As time goes by a lot of good information can get lost on the internet. This is a press release from NAEBA in August of 2004 that covers the intentional effort of many state REALTOR associations (Including ours here in Michigan) to confuse and mislead buyers about agency.
It is clear enough and important enough that I wanted to reproduce a few of the paragraphs here so when the topic comes up again it is easy to find.
Insider Trading Within the Real Estate Industry? – The National Association of Exclusive Buyer Agents (NAEBA) Points to the National Association of REALTORS (NAR) and State Realtor Associations for Falsely Misleading Consumers
N.J., Aug. 25 2004 /PRNewswire/ — Claiming that most National Association of REALTORS(R) members (Traditional Agents who often try and claim to represent both sellers and buyers in the same transaction), are infringing on the trust of real estate buyers by falsely claiming to be “Exclusive Buyer Agents,” the National Association of Exclusive Buyer Agents wants to set the record straight.
“In a nutshell,” says Andrew Show, NAEBA president, “NAR and many of its state REALTOR associations have promulgated a falsification falsification of the truth by claiming that real estate buyers are getting `exclusive buyer representation’ when, in fact, these buyers are simply giving an `exclusive compensation agreement’ to that particular Real Estate Company.”
Show explains that NAR’s promotion of “exclusive buyer representation” has little to do with how the buyer is represented. NAR’s deliberate misuse of this terminology, however, has misled consumers by confusing them into thinking that they are getting exclusive buyer representation with an Exclusive Buyer Agent on every purchase, when, in fact, the consumers are not receiving these specialized services. These misrepresentations that go on in the real estate industry are more massive and widespread than recent corporate scandals that have received so much media attention. This malpractice has detrimentally affected buyers and sellers for over a decade. Show also explains that the misleading representation lies in the fact that many groups use terms such as “Exclusive Buyer Agent,” “Exclusive Buyer Agency,” or “Exclusive Buyer Agency Contract,” yet these same groups do not truly engage in the professional behaviors inherent in these definitions — protection, negotiations, advocacy, no conflicts of interest, and fiduciary representation to and for that buyer, exclusively.
“Very simply, `exclusive buyer agent’ means that a real estate professional and their company is dedicated solely – exclusively – to the rights of the home buyer, not the seller, during a real estate transaction,” says Show. “This means that exclusive buyer agents and exclusive buyer agencies never represent the seller’s property listing. Never! “A seller will sign an `Exclusive Right To Sell Listing Contract’ which has nothing to do with Agency or Representation. That is clarified in a completely separate document. No Realtor would ever refer to this as an `Exclusive Seller Agency Agreement!’ So why does NAR treat buyers like second- class citizens?” Show wonders. Show cites an example of an Ohio real estate company that refers to their buyer agency agreement as an Exclusive Buyer Agency Contract. “Yet the only thing exclusive about it is the fact that the buyer must purchase through that real estate company during the term of the agreement,” says Show. “It has nothing to do with representing the buyer’s best interests exclusively.” “Consumers must be aware of these all-too-prevalent falsifications. Consumers who are aware are now demanding full representation by a true EBA” states Show.
For more information about obtaining representation from a true EBA such as NAEBA, visit their website at http://www.naeba.com.