Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Last year, I almost purchased a home in California. I got to the point of making an offer, signing a contract, and putting down a deposit. Eventually, however, I ended up backing out amicably.
During the contract process, I signed a DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS form. The exact form in question can be found at:
Is this form binding like a Buyer/Broker agreement? I know there are true Buyer/Broker agreements, such as a Buyer Broker Agreement -- Non-Exclusive/Not for Compensation" (Form BRNN), Buyer Broker Agreement -- Non-Exclusive Right to Represent" (Form BRNE), or a Buyer Broker Agreement -- Exclusive Right to Represent" (Form BRE). The agency disclosure form seems not to have wording that binds me to my buyer's agent at the time.
I ask because the buyer's agent I was working with did not meet my expectations, and I want to work with someone else. I don't want to be stuck in a situation where the old agent is entitled to a commission as a result of this form. I have seen advice that says a buyer should get a written statement releasing them from a Buyer/Broker agreement. I don't see any wording to support this being a Buyer/Broker agreement (I am sure it would state that on the title of the form), but I just wanted to make sure.
Bottom line... my 2 questions:
1) What is the purpose of the DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS form?
2) Do I need any written confirmation of being released if I change agents?
Disclosure is meant to inform the consumer as to the function of a real estate agent.
It does not bind you to any agent.
It is strictly to help in your understanding, as indicated in the first line.
What Mike said. I always point out on the form the verbiage just about the signature line (on the one here in Texas - don't know what California's says) that says that the signer is acknowledging receipt of the information. That's all the signature does, here - makes sure that the buyer acknowledges that the've received the information about how brokerage works in Texas. My buyers get to keep a copy of the form, too.
Is this the only document you've signed?
As for changing agents, there is the possibility that the current agent would have a case against the new agent for procurring cause if your new agent helped you buy a house that the old agent brought to your attention. That would depend on the circumstances, and would involve the agents in question, not you, usually.
And, boy, looking at that form, I can see why you're confused, I used to be a legal assistant and I find the actual statute on the second page overwhelming! I'll sit down and read it after caffeine and see if anything in it contradicts what I've said here.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,302,067 times
Reputation: 6471
The AD-1 form which you signed with your offer is a mandatory disclosure form. It is ONLY a disclosure and not a contract of any kind. Feel free to work with whomever you want to.
Bonus Points to my friends from outside CA for getting the answer right.
Last year, I almost purchased a home in California. I got to the point of making an offer, signing a contract, and putting down a deposit. Eventually, however, I ended up backing out amicably.
During the contract process, I signed a DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS form. The exact form in question can be found at:
Is this form binding like a Buyer/Broker agreement? I know there are true Buyer/Broker agreements, such as a Buyer Broker Agreement -- Non-Exclusive/Not for Compensation" (Form BRNN), Buyer Broker Agreement -- Non-Exclusive Right to Represent" (Form BRNE), or a Buyer Broker Agreement -- Exclusive Right to Represent" (Form BRE). The agency disclosure form seems not to have wording that binds me to my buyer's agent at the time.
I ask because the buyer's agent I was working with did not meet my expectations, and I want to work with someone else. I don't want to be stuck in a situation where the old agent is entitled to a commission as a result of this form. I have seen advice that says a buyer should get a written statement releasing them from a Buyer/Broker agreement. I don't see any wording to support this being a Buyer/Broker agreement (I am sure it would state that on the title of the form), but I just wanted to make sure.
Bottom line... my 2 questions:
1) What is the purpose of the DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS form?
2) Do I need any written confirmation of being released if I change agents?
Thanks!
Agree with what others have stated. The disclosure form which, at least in Colorado, was mandatory so clients were aware of the various types of 'working relationships'. Brokerages are required, again at least in Colorado, to have the individual sign the disclosure to show they were complying with laws. But just signing the definitions of working relationships does not mean you have an agency relationship - that's where a buyer agency contract would be utilized (at least for people who use them).
From reading your post, it doesn't appear that you signed a buyer agency contract so no harm no foul - unless someone from your state and more familiar with your particular state laws says otherwise, I'd think you can work with whomever you want in the future (and should if this one agent did not meet your expectations, etc.)
The agent is required to provide the notice to you, but you are not required to sign it if you are not comfortable doing so. As the agents have stated, it does not bind you to a particular agent or broker.
I had the exact same situation... actually made and offer on a house and the agent who showed it to me negotiated the deal (she came recommended from another agent). I actually found the house on the net. She was terrible... lazy. I backed out of the deal for a few reasons. After I did, she said "I hope this doesn't mean you don't want to work with me again..."
Ugh, I had signed the disclosure form, but no buyer/agent agreement. So, I sent her an email once the deal was dead saying that I was more comfortable working on my own directly with the listing agent. She responded saying she understood and that was that.
I did end up signing with a strong buyer's agent and have two offers out now. fingers crossed.
Do yourself a favor, commemorate your proceeding without her in an email, even if it's uncomfortable and have some peace of mind.
Those forms (called Blue Brochures in my area) use to not have a signature line on them at all. The agents were just suppose to give them to any potential client or customer "at first substantial contact" (which is a vague phrasing meaning "as soon as you have real conversation about buying or selling".)
What the real estate commissions found, though, is that they weren't having to print enough of the brochures to match the number of contracts they were seeing. That means that the agents weren't giving them out.
Thus, they added the signature lines to make agents accountable. Agents have to have clients sign them in order to prove that the agent did their job and handed them out. It is the agent's receipt, so to speak.
If you refuse to sign it, the agent has to write "Customer refused to sign" (or something similar) and a date, and put it in their file. They can get fined if they don't have something.
In the state of Maine, this one page form does not have a place for signature and states in bold print "THIS IS NOT A CONTRACT" along with a shaded box that says, "***Remember*** Unless you enter inot a written agreement for agency representation, you are a customer - not a client." My office policy is to have two of the forms to present to the new customer and have them initial somewhere and we file a copy and they have a copy. The form also gets loaded, along with all of the other documents into HomeBase, the Reology Extranet program that a client can access with their log in and password forever.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Funny Things...
