Negotiating the best result for buyers and sellers in Central Texas doesn't have to be a trade-off between getting the best outcome and being true to yourself. Many sellers are so offended by a low offer that they refuse it outright. But how should you respond to a really low offer? When representing a buyer, you have an ethical duty to show them the advertisement for the property they are interested in. However, you also have some options to address the fact that the compensation being offered is inadequate.
First, buyers and sellers can negotiate the commission paid to their brokers and agents at any time. You should consider using a purchasing agency agreement that sets out the services you will provide and the compensation that your customer will be responsible for paying. Often, the buying agency contract explains that you will first request that you be compensated with the amount indicated in the advertisement, but if that amount is not adequate, you will expect your customer to compensate the difference between what was offered and what you are asking for. How much of a difference is up to you.
The purchasing agency agreement is concluded between you and your customer, so you and your buyer can negotiate the terms of that agreement at any time. A buyer's representation agreement is a contract between a buyer and a broker, not a seller. Therefore, your buyers will continue to be represented by their previous broker. However, your buyers can request that they be exempted from buyer representation agreements with their previous agent.
If you have reached an agreement with the stockbroker regarding cooperation and compensation, you can represent the purchaser as exclusive agent. The broker cannot name him because he is not an associate of the publicly traded broker and, according to the facts, as he describes them, no intermediary condition will arise. Of course, sensitive information obtained from the seller when you were acting as the seller's agent could not be disclosed to your new customer, the buyer. At the time a property is listed, the licensee is obliged to inform the owner of their opinion on the market value of the property.
Once appointments have been made, designated partners can provide opinions and advice to their party during negotiations if they choose to do so. If you have created an agency relationship in which you represent the buyer even though you haven't signed a representation agreement, then you have a fiduciary duty to the buyer and are not a sub-agent of the seller. A sub-agency relationship isn't as common as it used to be, but it generally arises when an unrepresented buyer uses the services of a broker to view a property. In that case, that broker has a fiduciary obligation to the publicly traded broker and the seller, not the buyer, and the buyer is treated as their customer.
It is important that brokers in this situation obtain permission from their publicly traded agent and explain their role to their buyer in order to avoid confusion. The material provided here is for informational purposes only and is not intended or should be considered legal advice for your particular matter. You should contact your lawyer for advice regarding any particular issue or issue. The applicability of the legal principles discussed in this material may differ substantially in individual situations.
