Real Estate Blog for Buyers and Sellers - Black Canyon Homes

New Rules of Real Estate - 2024

LOTS of changes happening right now. Here is a great video from the president of Real Broker, LLC explaining what's up.

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Buyer Agreement BEFORE You See a Home Or NOT???

Next weekend, according to NAR, if we talk about showing you a home, you will first need to have a buyer agreement in place before a single door opens. The form that establishes an agency agreement with a buyer is called an Exclusive Right to Buy Listing Agreement. The updated, education version can be found here. One element of the form puts us into a contractual working relationship. The second piece defines how a buyer agent gets paid. That amount is always negotiable. The term of the agreement is also open for definition and found in this form. While we much prefer to build relationship first and get to know our potential clients BEFORE a contract is signed, the NAR settlement terms force us to get this agreement worked out before one door opens. But, the Colorado Real Estate Division sent out a letter saying that it is NOT in the best interest for buyers to have to sign a contract before being able to vet out a broker. They go so far as to say that brokers could be subject to broker license discipline for violations. We are between the proverbial rock and a hard place. According to our broker, the Buyer Disclosure Form seems to suffice both parties' demands. You can see a copy of the education version here. You will probably see this form presented to you unless this week poses yet more changes we need to comply with, which is highly possible. Personally, our experience shows that it is good to take a little time to get to know each other. We look at homes and get a feel for one another. You can gauge our competency. We look at you. At the end of that time, we can decide whether working together makes sense. If so, the Buyer Agency Agreement is the right form to complete, and we BOTH enjoy all that that presents. Relationship is a two-way street. We apologize to the consumer for all the chaos that is about to unfold before you. We thank you for bearing with us. Some folks ask can they just get the listing agent to serve both sides. In Colorado, it is illegal to be an AGENT for both sides in the same transaction (it's called dual agency). A house listed already has a listing agreement in place. They most likely defined the relationship as an agency relationship. They also have to disclose to you what their relationship is when you approach them. If you want your own representation, you can get a buyer's agent. They have legal duties to protect your best interests just like the seller's agent protects his/her client. The third option is that you could have a transaction broker, who is a referee and mostly a paperwork person. In CO, if you ever see a broker serving both sides, this is the structure of the relationship. It is perfectly legal but brings with it no advocacy and more limited legal duties. You can see the disclosure on definitions of working relationships here. Our mandate has always been to help you find your place. We will continue to do so. The Black Canyon Homes team. We are brokered by Real Broker, LLC. PS Here's an interesting article on the matter on Real Estate News.

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NAR Settlement Guide for Buyers

The National Association of REALTORS put out this information for buyers on the changes that are coming this month. Part of it reads... "Here is what the settlement means for homebuyers: You will sign a written agreement with your agent before touring a home. Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much. The buyer agreement must include four components concerning compensation: A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”). A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and, A conspicuous statement that broker fees and commissions are fully negotiable and not set by law." Here's the link to the full article.

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