This week’s column is going to be more direct and personal than usual.
Last week, someone called, asking me to show them properties over the weekend. I explained the new requirement that I can’t show property without a signed buyer representation agreement. Their response? Aggressive and almost hostile. They said they already had an agent from out of the area who they didn’t want to “bother” but would represent them if they decided to buy. They didn’t believe me about the new rules and essentially wanted me to show them properties for free, without any agreement or compensation. Obviously, that didn’t happen.
Here’s the reality: No Realtor can show property to anyone without a written representation agreement. Not even to their own spouse. Without that agreement, it’s unethical, it breaks several rules and it opens us up to fines that start at $1,500 – no warnings, no slaps on the wrist. It’s automatic.
To clarify, here’s the actual Rule 9.1 from the California Regional Multiple Listing Service (CRMLS), which applies to all licensees who are members, whether or not they’re Realtors:
“Buyer Broker shall follow all showing instructions as set forth in the MLS. Buyer Broker shall only provide access for showing, touring, or inspecting a listed property to a client with whom the Buyer Broker has a written agreement that includes the following in a conspicuous location: a) a specific, objectively ascertainable compensation amount or rate, including how any such amount will be determined, and the amount of compensation may not be open-ended such as ‘buyer broker fee shall be whatever amount a seller or listing broker is offering to pay buyer broker or buyer’; and b) a term that prohibits Buyer Broker from receiving any fee or compensation that exceeds the amount or rate in the agreement with the buyer, regardless of the source of the payment of the fee; and c) a statement that broker fees and commissions are not set by law and are fully negotiable. Nothing in this policy shall impose any restriction or requirement upon the Listing Broker.”
My advice to homebuyers? Interview your real estate agent. Make sure they meet your expectations and will provide a level of service that aligns with the fee they charge. Don’t rush to get into a home at the expense of quality. When I first meet a homebuyer in person, it’s typically through a short-term representation agreement. This allows the customer to see a few homes legally and ethically while we figure out if we’re a good fit. If we are, we move forward with a more formal, longer-term agreement so I can fully deploy my skills in their favor.
Buying a home is one of the most impactful financial decisions you’ll ever make. Choose a local, knowledgeable and ethical real estate professional. You’re paying for service – make sure you’re getting the best.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social – Instagram: @theresagrantrealtor|YouTube: @theresagrantrealtor. Theresa is a Broker Associate with Coldwell Banker Sky Ridge Realty.
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