The History of ABR (Accredited Buyer Representative)Since the existence of buying and selling real property, the agents working with buyers and sellers always represented the seller in a transaction. Little did buyers realize the relationship with their agent was really considered one of a buyer-customer and not a buyer-client. The agent or broker they hired was really a sub-agent for the seller, and their fiduciary (legal) duties were to the seller only. Buyer agency started to be recognized in the late 1980’s. REBAC® (Real Estate Buyer’s Agent Council) was formed in 1988. Agency Laws differ from state to state and not all states recognize buyer agency. As a home buyer you never want to take for granted that your agent will provide you with their fiduciary responsibilities. That is why it is extremely important to discuss agency upfront with the agent or broker you consider hiring. Find out exactly the agency status they will have with you, the buyer.
What Separates a Buyer Representative and an ABR?An ABR Realtor® has completed advanced training courses on exclusively representing a buyer. They also have received additional training assisting buyers in making informed decisions throughout the entire home buying process. They must be in good standing with the National Association of Realtors (NAR) and abide by a strict Code of Ethics.
The Buyer-Broker Exclusive Employment AgreementTo real estate professionals, hearsay means absolutely nothing. Verbal agreements or disclosures have no legal grounds in a court of law. Ask your ABR Realtor® about the Buyer-Broker Exclusive Employment Agreement. This agreement essentially creates a formal agency relationship between you and your buyer’s agent. It is a guarantee or assurance that your interests are protected. If you think about it, a contract agreement is signed between the listing agent and seller when they market a home for sale. There is a contract between the buyer and seller when a buyer makes an offer on a home. Finally, there is now a contract agreement between the buyer and their representative or ABR Realtor ®. This Buyer-Broker agreement will assure the buyer their buyer’s agent will follow through with the following fiduciary duties:
- Reasonable Care and Diligence
- Pay full consideration to your wants and needs
- Tell you everything they know and find out about the seller
- Keep all information about the buyer confidential
- Disclose all material facts and offer professional advice
- Fully explain pricing, comparable sales and negotiate the best price for you on a home
- Protect and guide you through the entire home buying process
- Make every effort to resolve and address any problems to your advantage