Buyer agency agreements test limits of real estate agent-buyer trust

"Under the terms of NAR's settlement agreement, homebuyers must sign a buyer agency agreement with their agent prior to touring a property together unless state law dictates otherwise. While this agreement may pertain only to a certain property or be as short as 24 hours, real estate agents are most often aiming to eventually have the client sign an exclusive buyer agency agreement (aka a buyer broker agreement), which can last up to several months."

"These agreements not only outline the services the buyer's agent will provide the client with, but also how much the client will pay the agent for providing these services. However, agents are claiming that buyers are breaching their agreements and cutting them out of the deal. Just found out one of my clients went straight to the builder and closed on a home I didn't even know they toured, one agent wrote on Facebook. We had a BBA [buyer broker agreement] in place. Is that even enforceable[?]"

"It comes down to procuring cause, Marx Sterbcow, the managing attorney at Sterbcow Law Group, said. If the consumer goes directly to a builder via their website or a direct call, and they meet with the builder's staff with no agent around and there has been no contact with the agent, then it would be hard to argue procuring cause, so there's not really a case."

Under NAR's settlement, homebuyers must sign a buyer agency agreement before touring a property with an agent unless state law provides otherwise. These agreements can be limited to a single property or short durations like 24 hours, but agents commonly seek exclusive buyer broker agreements lasting months. The agreements define agent services and the buyer's payment obligations. Some agents report buyers bypassing them and closing directly with builders despite existing BBAs. Enforceability depends on proving procuring cause and demonstrating the agent's specific actions to facilitate the transaction, such as introducing the client to a builder and participating in communications.

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