I just saw a blog that disturbed me re buyer representation. I am going to paraphrase here because I don’t want to use a direct quote for the whole thing:
It mentioned that there is a state law that an agent can only show a property if:
1. There is an Exclusive Right to Represent agreement or
2. Has the seller’s approval to show the property
What this implies is that the agent needs to get the sellers approval to show the property. Ok, I buy that, the agent has to set up a showing with the listing agent. You always need to do that.
BUT YOU DO NOT GET APPROVAL BY THE SELLER TO SHOW IT TO A SPECIFIC BUYER THAT YOU HAVE A SIGNED AGREEMENT WITH.
The blog also mentions that once you have a signed buyer representation agreement, the agent can show that buyer ALL PROPERTIES THAT ARE LISTED BY ANY BROKER.
No, the agent ALREADY CAN show all properties if he/she is part of the MLS. No buyer representation agreement is necessary.
AT LEAST IN CALIFORNIA!!!!!
Although I would like you to sign a Buyer's Representation Agreement if it looks like I will be spending a lot of time with you, Mr. and Mrs. Buyer, I don't insist on it. If I am persuaded that you are in the market to purchase a property, I can show you any property that is in the MLS, and, by making a few phone calls, probably some that are not (especially Commercial and Income Properties). I am a real estate broker licensed in the State of California and I will help you with your real estate purchase without making you sign a contract that you might not be comfortable with.