The Deception Continues
The Real Estate Trainer, an online training company, recently sent out an email promoting scripts to use to get home buyers to sign an “Exclusive Buyer Agency Agreement”. The use of the terminology, “exclusive buyer agency” is deceitful at best and bordering on being a fraudulent act by trainers and the traditional real estate industry in Massachusetts and other states as well.
The concept of “exclusive buyer agency” is well-known in the industry as being the representation of home buyers only. The agent as well as the company they are affiliated with never represents sellers or takes listings. The traditional real estate industry knows this. The definition has been supported by articles and authors of homebuying books for the last 30 years. The definition was originally supported by the traditional real estate industry in several of their own publications, including Agency-Choices, Challenges & Opportunities published in 1993. It states “Exclusive Buyer Agency – The practice of representing only buyers and never sellers in a transaction. The company never lists a seller’s property and thus never has a seller as a client.” Yet they deliberately mislead the homebuying consumer into thinking that they too can act as an exclusive buyer agent even while representing home sellers and taking listings and practicing dual and designated agency.
The state of Florida traditional real estate trade group revised their recommended buyer representation agreements the end of last year. I’m licensed in Florida and submitted a letter telling them of the deliberate deceit that calling the buyer agreement an exclusive buyer agency agreement. Others did as well, to no avail. They kept the name.
A listing agreement with a seller is called an exclusive right of sale agreement. It isn’t called an exclusive seller agency agreement. A buyer-side agreement should be called an exclusive right of purchase agreement or even an exclusive buyer representation agreement. Calling it an exclusive buyer agency agreement is designed to take advantage of the generally well-known concept of exclusive buyer agency and to deceive real estate buyers into thinking they can trust the agent who says they are exclusively representing them, when in fact they are not.