What is an exclusive contract w/agent?

Exactly as stated in title. I am currently working a couple of FSBO SS flips. I am looking to start some short sale flips using agents to bring me listings and it was sugested that I talk to them about an exclusive contract.

What does that mean in the everyday A-B and B-C transactions/listings? :cool:

Edited: 06/26/2010 at 12:39PM

Nick J.

SFR Investor · Scottsdale, Arizona

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Apr 29 '10, 10:57 AM

That means that agent will represent you on ALL transactions.

Probably NOT something you want to do.

Tell the agent you'll sign one of those as soon as they sign the same thing saying you are their only client and they're not contractually (is that how you spell it) allowed to represent anyone else in any transactions. Its only fair, if you can't work with other agents, they can't work with other clients.

Edited: 06/26/2010 at 12:39PM by Nick J.

Sam M.

Real Estate Investor · Kalispell, Montana

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Apr 29 '10, 11:07 AM

Do you have this with the agent representing the transaction example you sent me? Or is the Buyer-broker exclusive employment agreement different?

Edited: 06/26/2010 at 12:39PM

Carla Reid

Residential Real Estate Agent · Phoenix, Arizona

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Apr 29 '10, 03:39 PM

Sam,

Who suggested this to you? An agent or someone else?

On the flip side of what Nick said (luv ya Nick!), if it was suggested that you talk to them (them meaning an agent) about an exclusive contract, it could also mean that you talk to the agent about an exclusive contract in which they will only bring you their short sale listings, not necessarily the agent requesting the exclusive contract.

The Buyer-Broker agreement is different. The Buyer-Broker agreement is an agreement between you as a buyer and your agent in which you agree to solely use their services to purchase property(ies) for a specific timeframe. If by chance you use another agent during the agreed upon timeframe, you are still obligated to pay a commission to the agent you had the agreement with.

I do not ask my clients to sign such an agreement, and I wouldn't suggest anyone do so. I'm sure other agents will be upset with me for saying so, but I prefer doing business with those who work with me by freewill, not by contractual obligation.

Edited: 06/26/2010 at 12:39PM

Sam M.

Real Estate Investor · Kalispell, Montana

572 posts
8 awards
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Apr 29 '10, 04:50 PM

I can't remember where I saw or how I came to the conclusion I should be looking for an exclusive contract???? Old age I guess..maybe youngtimers (is that a disease or a condition)

What I presented to a couple of realtors today was more like what you said Carla. That they would bring me any and all of their SS listings before they put them out on the MLS (no BofA) and I would take the hassle out of doing their short sales. I know the one guy just lost a SS because Ocwen wouldn't postpone the sale. I had talked to him about his listing as it was a property with a HIGH second mortgage with equity above the first and the first was foreclosing.

Point being I know the guy is fed up with SS's and how much work he put into the deal only to see it fall apart. Good candidate for my sales pitch : )

Edited: 06/26/2010 at 12:39PM

Curt Davis

Wholesaler · Memphis, Tennessee

Pro

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Apr 29 '10, 09:38 PM

As an affiliate broker it is not up to you if your buyers/sellers dont have to sign a exclusive agency contract. That is up to the principal broker. So in theory it is not to not make people sign that, its not up to you. Now if your principal broker does not have buyers or sellers become exclusive with a buyers or sellers agreement then in theory your wasting your time even dealing with them. What if you have been working with a buyer for 3 months + driving them around, showing them house after house that supposedly should meet their criteria, then all of a sudden they buy from someone else? Now you wasted your time, gas, energy on someone who was not willing to commit to you but you This will work only if your representing an actual person wanting to live in the home.

Edited: 06/26/2010 at 12:40PM

Curt Davis, buyMemphisnow.com
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