I COULD HAVE HAD AN EBA!
I could've had an EBA!
That is what you do not want to say just before or just after you have closed on your dream home and are wondering if you have been told everything.
EBA “Defined”
EBA is the acronym for Exclusive Buyer’s Agent. These are real estate professionals who have determined that consumers are best served by a licensee who always and only represents the interests of home buyers. EBA’s do not list and sell homes and therefore do not have the conflicts of interest or conflicts of attention that are a part of life in a “traditional” real estate office. To torture a phrase from a famous purveyor of chicken, “they do buyers right”.
In most states, the “default” or automatic relationship that occurs between a home buyer and a licensee is that of non-agency. That is, a broker who pledges to not represent either the buyer or the seller. The level of disclosure regarding the relationship varies from state to state but even when required, surveys have found spotty compliance. “Buyer Beware” or perhaps “Buyer Be Aware” applies.
What if I cannot find an EBA?
A licensee in a traditional office in most states can offer to “act” in the capacity of a buyer’s agent and if you cannot find an EBA, a buyer agency agreement with a traditional broker can be an acceptable alternative. You should carefully read the typically required written agreement with that office and know what will occur should you become interested in one of the office’s listings. Do you have the option to terminate the agreement and seek representation elsewhere? Or, will the licensee automatically become a “non-agent” (often called a “transaction broker”) with you having no option? Do you have the option of terminating if you are not satisfied with the service being provided and what are the “carryover” provisions should that occur?
Need more information?
If you are buying in the Greater Denver Metro are you can contact me at russ@buyerbroker-denver.com or 800-621-9747 to obtain more information. On a national basis, the National Assoiation of Exclusive Buyer’s Agents (NAEBA) will be able to refer you to an experienced EBA in your market.