www.TheBuyerAgency.com
Real Estate Buyer Protection
Accredited Buyer Representative (ABR)

The most basic question that can be asked of any real estate professional is:


"Who do you represent in this transaction?"

When you use a traditional or a listing agent to see a particular property you are not a client - you are a customer. It is very simple - you are unprotected and especially so in a real estate market that is unfamiliar to you. If, for some reason, you do not want to be represented by a Buyer Agent then the best rule to follow is disclose nothing to the agent. Do not talk about anything that may give the seller a heads up on your situation or position.

o What does it mean for a Buyer to be represented in a Real Estate Transaction?
o What can a Buyer expect from a Buyer Broker?
o What obligations does the Buyer Broker have to the Buyer (Principal and Client)?
o What obligations does the Buyer have to the Buyer Broker (Fiduciary)?

Buyer Brokerage can be explained in plain language, and the reasons a Buyer should use the services of a Buyer Broker in Real Estate transactions, especially when purchasing a second and/or vacation home in a real estate area unfamiliar to the Buyer. First select an experienced REALTOR and one with the formal professional accreditations of Buyer Brokerage such as an ABR (Accredited Buyer Representative).

1.Not all real estate agents are REALTORS. A REALTOR is guided by a strict code of
ethics and standards as prescribed by the National Association of REALTORS (NAR).

2.Select a REALTOR with at least five full time years of experience. It usually takes
that long for a REALTOR to gain the necessary experience to fully understand the market
place in which they practice.

3.Any real estate agent can say they will represent a Buyer with a signed Buyer Brokerage
Agreement. Choose only an ABR (Accredited Buyer Representative). They have earned
this designation by study, examination and documented Buyer Representation experience.

Q. Who pays the Buyers Agent Commission?
A. A property listed by a Sellers Agent and entered into any Multiple Listing Service (MLS) of which both the Sellers Agent and the Buyers Agent are members agree to automatically split the commission as stated in the listing agreement. The Seller pays the full commission as agreed between the Sellers Broker and the Seller. The Sellers Agent does not have any other choice but to split the commission with the Buyers Agent. The Buyer incurs no additional cost for the Buyers Broker Representation. This means that I can represent a Buyers interests in a real estate transaction at no cost to the Buyer.


Q. Is a Buyer represented by an agent just because the agent says they can or will represent you?
A. The answer is simple, NO. In Georgia for an agent to represent a Buyer the agency must be agreed to in writing through a Buyer Brokerage Agreement.


Q. Can I cancel the Buyer Brokerage Agreement?
A. If your Buyer Agent is a REALTOR and used the Georgia Association of REALTORS standard Buyer Brokerage Agreement, either party may opt out of the agreement by simply giving written notice to the other party. Your continuing obligation would be to pay a commission on any property you have viewed with the Buyer Agent should you choose to purchase one of these previously viewed properties. That is only fair as the Buyer Agent found the property and took the time to introduce you to the property that you subsequently purchased.


Q. What can I expect from my REALTOR Accredited Buyer Representative (ABR)?LOYALTY: A most important and fundamental fiduciary duty an agent owes to the principal. Loyalty obligates a broker to act in the best interests of the principal, excluding all other interests, including that of the broker.

Obedience: An agent is obligated to obey all lawful instructions that conform to the agency relationship. However, this duty never requires an obligation to obey unlawful instructions.

Disclosure: An agent must disclose to the principal all known material information affecting the agent principal relationship. This duty includes facts affecting value, desirability, and other relevant information pertaining to the transaction, such as the other party's bargaining position, the identity of potential buyers, ability of the other party to offer a higher price and any intent to resell the property for profit. An agent's duty of disclosure to his/her principal must not be confused with a real estate brokers duty to disclose any know material facts about the property value to non-principals. The duty to disclose known material facts is required by a broker's duty to deal with all parties honestly. The duty of honesty in dealing with all parties is prime.

Confidentiality: An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property. The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller's property from the buyer, or to misrepresent the property's condition. To do so constitutes misrepresentation and impose liability on both the broker and the seller.

Reasonable Care and Diligence An agent is required to use reasonable care and all due diligence when pursuing a principal's affairs. As an agent who represents others in their real estate dealings, a broker is under a duty to use skill and professional knowledge in pursuing a principal's interest. This responsibility does not extend to outside the scope of the agent's real estate license. Real estate licensees are not expected to perform services normally provided by engineers, lawyers, accountants, or other professionals. If concerns arise outside the scope of a broker's responsibility, the broker should acknowledge that and suggest that the principal seek additional professional assistance.

Accounting: An agent is required to account for all money and/or property that belong to the principal. This duty requires a broker to protect all money and other documents entrusted to them.

Buyer Brokerage Explained By Q & A

Q. How much does this service cost me?
A. There are no additional costs to you for this service. Although technically you are hiring the buyer agent, the compensation can come from the commission on real estate transaction which is split between the LISTING AGENT who represents the seller and the BUYER BROKER who represents the buyer. The same BROKER MLS membership requires this split.

Q. Won't I get a better deal if I buy directly from the listing agent?
A. NO! The listing agent owes his or her loyalty to the seller and is required by agency agreement to get the best deal for the seller. The listing agent must negotiate upward. The buyer agent has the obligation to work on your behalf and will negotiate downward.

Q. Can any real estate agent be a buyer agent?
A. Yes, Any Georgia licensed real estate agent may be a buyer agent. The key is only about 4% of all agents have earned the ABR( Accredited Buyer Representative) designation through training, experience and examination. Choose an agent with an ABR designation for not just any Buyer Representation, but experienced (ABR) Buyer representation.

Q. If this is so good for the consumer, why aren't all real estate agents offering Buyer Agency?
A. Income. When a listing sells the listing agent is assured of a commission rather they have done anything to sell and promote the listing or not. Many companies are resisting change because they like the old way of listing homes and representing the seller as their clients, and the buyer as customers only. This has been their source of income for years. The consumer has demanded change and Buyer Brokerage representation is the best choice for all buyers.

Q. What is this dual agency representation I hear about?
A. In many states the law allows a real estate agent with proper disclosure to represent both sides of the transaction. This would be like asking an attorney to represent both parties in a divorce. Is it possible to serve two masters and give both the buyer and the seller equal and full representation? My answer is NO!

Q. Why should I consider a Buyer Broker now?
A. There are good agents everywhere, but unless the agent you mentioned declared in writing to you that he/she represents only you, that agent is representing the Seller. Required agency disclosure changed all of that. Buyers discovered they had no representation. The buyer demanded change once they realized they were not represented in the transaction unless they specifically had a written agreement with a Buyer Broker representing their interests.

Q. How does the exclusive buyer agent find a home to match my needs?
A. First, the buyer agent is not working under any restrictions or conflicts of interest that would direct or influence the home search. All homes that are currently available on the market (listed) are fully available to us via our membership in the Multiple Listing System. We locate the best home and negotiate the best price and terms on your behalf.

Q. What other differences can I expect from my exclusive buyer agent?
A. When you hire your buyer agent the entire home-finding process changes. Unlike a listing agent who is hired to use salesmanship to press the sale of a particular property by selling you on the good points only, the buyer agent will help you discover both good and bad features of all the properties that fit you needs.

Q. All I want is someone to represent me, why is it so complicated?
A. It's really not. A listing agent represents the interests of a Seller through a written Listing Agreement. Likewise a Buyer is represented by a written Buyer Brokerage Agreement. If you want full representation don't settle for anything less than A Buyer Brokerage Agreement. Your Buyer Broker will work only for you. With individual allegiance, the Buyer Broker will strive to locate the best property and then use negotiating skills and methods to obtain the best possible price and terms for the buyer.

Georgia Mountain Properties, LLC
Jimmy Jenkins, BROKER, ABR, e-PRO, REALTOR
www. TheBuyerAgency.com
770-365-8795