Sep 18, 2012
30-second agency quiz question
18 Sep 2012
Posted by Andrew Kantor
The last agency quiz question was a quickie, but this one is a, er, longie? Well, it’s not a gimme, that’s for sure.
You are holding an open house for one of your listings (obviously). A customer walks in who is very interested in the property. Knowing the law, you quickly disclose that you work for the seller (using VAR form 100: Disclosure of Brokerage Relationship for Unrepresented Party(ies).
So far so good.
But then this customer says, “Can you show me two other homes in the area — listed with other firms — just so I can compare them to this one? But this is the house I want.”
The question: What forms, if any, do you need to have this person sign before you show them those other homes?
A: None. He’s only a customer, not a client.
B: A buyer-broker agreement (either exclusive or non-exclusive). You are showing him property, and it’s clear he is interested in purchasing a home. If later he wants to negotiate for your listing, then other forms will come into play.
C: A Disclosure of Dual Agency or Dual Representation. The person is clearly interested in your listing, and you can’t represent clients on both sides of the transaction without this.
D: Both B and C.