My realtor is working as a “Non-Agent” Is that normal?

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My realtor is working as a “Non-Agent” Is that normal?

Jared Smith
Rental Property Investor · UT · Member since 2018 · 80 posts · 14 votes

I am reviewing the offer agreement that he realtor I’m using wrote up and sent me to sign. As I read through it I noticed that he marked himself as a “Non-Agent to the Buyer.”

Is this normal?

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y

that answer was kind of BS..   a buyers brokers agreement is a very specific agreement that says you will pay them if you buy anything..   clicking the box on a deal your doing just establishes agency for that transaction.

I call BS on that explanation 

@Charlie MacPherson  see above Charlie you agree

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  • Jared Smith
    OP
    Rental Property Investor · UT · Member since 2018 · 80 posts · 14 votes
    7y

    @Tchaka Owen

    Thank you Tchaka!

    1Reply
  • Jared Smith
    OP
    Rental Property Investor · UT · Member since 2018 · 80 posts · 14 votes
    7y

    @Rachel Graves

    I believe the seller is a realtor as well so I do not think so.

    0Reply
  • Jared Smith
    OP
    Rental Property Investor · UT · Member since 2018 · 80 posts · 14 votes
    7y

    @William Hochstedler

    Thanks William! Wish I would have read this sooner. This was on the agreement to sign on a backup offer with $1000 earnest money. Written out to their realty company to hold. Is it too late to bring in a better realtor now?

    0Reply
  • William Hochstedler
    Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    @Jared Smith

    If you haven't signed any document binding you to an agency relationship with the agent, you have no obligations.  In Idaho, an agent is not required to be your fiduciary prior to writing an offer.  In other words, with respect to agency, writing an offer on your behalf as a non-agent is no more binding than an agent merely showing you a house.   The state approved form you would have signed to bind you to agency is "R-14 Buyer Representation Agreement"

    Moreover, if you did not sign this form or another like it, you have not formally obligated yourself in any way to compensate the agent.

    So the short answer is you can walk at any time because you haven't signed anything binding with them regarding agency.  So there is nothing preventing you from going out and finding a good agent to represent you whether you keep working with this agent or not.  If you are already under contract (in backup) and have delivered the earnest money, you could simply cancel and take it to a new brokerage and have them resubmit the offer..  Or you could just let it sit while you interview agents.  Either way, a competent agent will help you navigate your options and there's nothing preventing you from talking to one.

    I think most people here on BP would agree that a good real estate agent is one of the most important team members you can have.  So find that person first and then decide if you want to take the deal over to them.

    For any one else reading this, Idaho is still a bit wild west (and caveat emptor) when it comes to agency.  The agent in question needed to better explain agency to Jared (and deliver a mandatory form).  But other than a lack of knowledge of how to properly construct a buyer broker relationship that protects both parties, he really hasn't done anything scammy.  The "non-agent" language comes from the REPSA in the section on representation.

    Merry Christmas!

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  • Rick Locchead
    Pensacola, FL · Member since 2017 · 3 posts · 1 vote
    7y

    @Jared Smith just sign a buyer rep agreement and note on the contract that it’s just for that one property. Keeps it sweet and simple. A lot of people forget that any contract can be modified if both parties initial.

    1Reply
  • Jared Smith
    OP
    Rental Property Investor · UT · Member since 2018 · 80 posts · 14 votes
    7y

    @William Hochstedler

    Top notch clarification! Wow! William thank you very much! 

    0Reply
  • Jared Smith
    OP
    Rental Property Investor · UT · Member since 2018 · 80 posts · 14 votes
    7y

    @Rick Locchead  Thank you Rick! Very good point! I need to do this. Would you recommend that on every contract? Or just first time deals that you are still getting to know that realtor better?

    0Reply
  • Ashley Wise
    Investor · Pittsburgh, PA · Member since 2018 · 40 posts · 18 votes
    7y

    @Jared Smith as an agent, I almost always get the buyers agency signed. This way I act in the best interest for the buyer or seller and contractually they cannot just hop over to another agent.

    Here in SWMO we call a non-fiduciary role like that a transaction broker—basically, someone filling out paperwork for a commission—the agent is not obligated to give you anything but honesty, accounting and timeliness in filling out paperwork/submitting offers.

    0Reply
  • Ashley Wise
    Investor · Pittsburgh, PA · Member since 2018 · 40 posts · 18 votes
    7y

    @Jared Smith PS buyers agency agreements are cancelled because the client fires the agent or the agent fires the client all the time. And a buyers agent isn’t paid unless a deal goes through.

    0Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    7y

    Wholesalers. Scouts. Wanting no liability or fiduciary responsibilities. 


    0Reply
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