Exclusive Buyer Broker

Exclusive Buyer Broker

An Exclusive Buyer Broker (EBB) is a real estate brokerage, agency or office that represents buyers only. Agents working for an EBB are buyers' agents exclusively.

An EBB or associated broker does not take or hold listings or represent the seller or landlord in any way, nor do the agents working under or for him. This includes advertising "for sale by owner" properties.

In many states, by law, the broker or agent must have a written agency agreement to represent the buyer exclusively. Without one, the broker or agent may be working for the seller or in a limited capacity.

It costs no more to hire or use an EBB. In fact, under most state laws, the buyer broker must ensure that he is doing everything he can to benefit the buyer, even if it means abandoning the sale (and losing a commission) when it is in the best interests of the buyer.

In many cases, EBBs get paid in the same way as traditional agents: a percentage commission based on the proceeds of the sale. In other words, the agreed-upon commission is determined based on the price of the property, and the agent is paid after the deal closes.

These guidelines vary from state to state, area to area, and city to city -- and may be governed by law in some case.

In 1983, a Federal Trade Commission study revealed that more than 72 percent of home buyers nationwide mistakenly believed that the agent who was showing them homes was representing their interests. As a result, laws requiring agents to disclose whom they actually represent have been passed across the U.S. As consumers generally became aware that most agents worked for the seller, many began demanding their own representation.

As a historical sidebar, the first national franchise to offer Exclusive Buyer Brokerage was The Buyer's Agent Inc., which was formed by Tom Hathaway, a former state highway patrolman and investigator/compliance officer for the Missouri Real Estate Commission. It was formed in July 1988, specifically to develop and practice the art of exclusive buyer representation. From the beginning, the company promoted three key elements for a successful real estate transaction: service, savings and satisfaction.

The individual franchise withstood legal challenges, lawsuits and ethics complaints intended to put an end to the concept of buyer agency in general.

For Example see: Snider v. Oklahoma Real Estate Commission1999 OK 55987 P.2d 120470 OBJ 1834Case Number: 88917Decided: 06/01/1999Mandate Issued: 09/17/1999Supreme Court of Oklahoma

http://www.oscn.net/applications/oscn/deliverdocument.asp?citeID=60848


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Exclusive buyer agent — An Exclusive Buyer Agent (or EBA) is a United States real estate firm (or an agent or broker who works in such a company) which represents only buyers of real estate. As such, they are distinguished from all other real estate firms by their… …   Wikipedia

  • Buyer broker — A real estate agent representing the buyer. The term loosely includes brokers who work in firm that represent the buyer only Exclusive Buyer Agents or EBAs, and buyer agents from traditional firms, which can represent both buyer and seller in the …   Wikipedia

  • Buyer brokerage — (or Buyer agency as it is also known) is the practice of real estate brokers (and their agents) representing a buyer in a real estate transaction rather than, by default, representing the seller either directly or as a sub agent. In the United… …   Wikipedia

  • Buyer agency agreement — Buyer Agency Agreements are where a Realtor represents the buyer of real estate. Creation With the advent of Buyer Agency (Buyer Brokerage) in the early 1990s as opposed to seller agency, a real estate Agent/Broker agrees and contracts to… …   Wikipedia

  • Buyer agent — In the real estate business, a buyer agent refers to an agent or broker that represents the buyer in a transaction. This can include buyer agents from traditional listing firms, as well as buyer agents from EBA (Exclusive Buyer Agent)firms, which …   Wikipedia

  • exclusive agency listing — Agreement between a property owner and a real estate broker whereby the owner promises to pay a fee or commission to broker if his real property is sold during the listing period, regardless of whether the broker is responsible for the sale.… …   Black's law dictionary

  • exclusive agency listing — Agreement between a property owner and a real estate broker whereby the owner promises to pay a fee or commission to broker if his real property is sold during the listing period, regardless of whether the broker is responsible for the sale.… …   Black's law dictionary

  • Real estate broker — This article is about the North American practice. For other definitions and practices in other countries, see Real estate. For real property, see Real property. Realtor redirects here. For the real estate industry trade association that refers… …   Wikipedia

  • Listing contract — A listing contract is a contract between a real estate broker (or his/her agent representatives, acting in the broker s name) and a seller or sellers of real property to give the broker the right to offer the property for sale.The contract is… …   Wikipedia

  • Pocket listing — A pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an Exclusive Right to Sell or Exclusive Agency agreement …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”