THE DREADED "CONTRACT " WORD AGAIN!
So.... let's call it The Buyer Agency Agreement. That's what it is, an amicable agreement between Buyer and Agent.
In a listing situation, the seller has signed a listing agreement. If I do everything right and the house sells, then our agreement is fulfilled. I am the only Agent working for my seller, the home has sold, and I get remunerated for it. Why should working with a buyer be any different? With you the buyer, if I do everything I said I'm going to do, If I protect your interests as though they were my own, if I follow my promise to you (Mission Statement), then my loyalty to you my valued customer, my principal, cannot be questioned. The results will be what you wanted and everyone is happy. Right?
Sometimes it does not happen this way. While working with me, having done all the right things: I've educated you in the current market, what the hot deals are and aren't, which are the best neighbourhoods, which ones to avoid, and given you all my negotiation strategies. Then, something else happens. You find out from a friend about a new listing, or you are driving by at the right time and see an agent just putting up new "for sale" sign.
In your excitement to have finally found exactly what you are looking for, you don't call me. Instead you approach that Agent directly, or it may even be a "For Sale by Owner" where you will approach the owner. You make the offer and get the house. If I don't have a buyer agent agreement with you, I get nothing! Is that fair? During the time I spent with you I could have been with a loyal customer, during the time I spent with you, I actually have out of pocket expenses. I don't know how any Agent would be willing to work without that agreement. Would you? Would you take a job not knowing for sure, if upon completing the job you were going to get a paycheque? A Buyer Agency Agreement would have assured me of remuneration for the work that's been done.
If you don't agree with this, don't call me.
There are a lot of circumstances where we could cancel the agreement at any time, just like I would cancel a listing. If we both agree that we can't work together, or things have changed for any number of reasons prohibiting you from buying at all any more, then by all means, our agreement is terminated. I absorb the loss as the cost of doing business and move on.
This agreement is not scary, just necessary and understandable.
