A. SERVICES PROVIDED IN THE INITIAL
COUNSELING INTERVIEW PHASE
Standard A(1): A Buyer Agent will disclose
that he/she is a Buyer Agent and define his/her agency relationship
to a prospective Buyer-Client. A Buyer Agent will explain how
different agency relationships may affect the level and type of
service a Buyer-Client may receive from a real estate agent.
Standard A(2): Before entering into an
agreement with a Buyer-Client, a Buyer Agent will determine if
any conflict of interest may exist on his/her own part or that
of a Buyer-Client. If a conflict should occur, a Buyer Agent should
be precluded from representing a Buyer-Client, who should have
the option of seeking representation elsewhere.
Standard A(3): A Buyer Agent will provide
a copy of these professional Standards and answer any questions
a Buyer-Client may have about them.
Standard A(4): A Buyer Agent will enter
into a written Agency Agreement with his/her Buyer-Client. The
agreement will include beginning and ending dates, the service
fee structure and payment method, and the responsibilities of
both parties.
Standard A(5): A Buyer Agent will make
him/herself available to his/her Buyer-Client in a timely manner.
Standard A(6): A Buyer Agent will pledge
absolute confidentiality to a Buyer-Client when representing him/her,
thereby protecting that Buyer-Client's ability to negotiate all
aspects of the transaction.
Standard A(7): A Buyer Agent will counsel
a Buyer-Client regarding his/her financial qualifications and
will assist that Buyer-Client in seeking and working with mortgage
lenders. A Buyer Agent will not steer his/her Buyer-Client to
any one lender but instead will assist him/her in evaluating interest
rates and closing costs.
B. SERVICES PROVIDED IN THE GENERAL
PROPERTY SEARCH PHASE
Standard B(1): A Buyer Agent will discuss
objectives and preferences in property styles, age, floor plans,
and so forth with a Buyer-Client, then develop from this information
a target property profile for him/her.
Standard B(2): Based upon the target property
profile, a Buyer Agent and his/her Buyer-Client will determine
the appropriate level of property preview services to be provided.
Standard B(3): With a Buyer-Client's target
property profile in mind, a Buyer Agent will search the real estate
market, including properties for sale by owners and builders,
to locate properties to show that Buyer-Client.
C. SERVICES PROVIDED IN THE PROPERTY
SELECTION/CONTRACT OFFER PHASE
Standard C(1): A Buyer Agent will discuss
and evaluate the properties viewed with his/her Buyer-Client,
comparing each property shown with the target property profile.
Standard C(2): Before preparing an offer
to purchase, a Buyer Agent will inform a Buyer-Client about any
defects or problems he/she has observed or in any way discovered
regarding the target property.
Standard C(3): Before preparing a contract
offer on behalf of his/her Buyer-Client, a Buyer Agent will prepare
a comparative market analysis, including explanations and documentation,
to determine the target property's market value. A Buyer Agent
will not prepare an offer to purchase a property he/she has not
seen.
Standard C(4): Before a Buyer-Client signs
an offer to purchase, a Buyer Agent will provide that Buyer-Client
with an estimate of closing costs and, whenever possible, with
the truth-in-lending estimate provided by the mortgage company.
Standard C(5): A Buyer Agent will counsel
his/her Buyer-Client and explain the choices available in completing
a real estate contract. This real estate counseling is based upon
a Buyer Agent's experience in negotiation and real estate business
decisions and is not legal advice. Legal matters should be identified
and a Buyer-Client advised to seek legal counsel where appropriate.
Standard C(6): Whenever possible, a Buyer
Agent will prepare the contract offer on a form which has been
designed to protect a Buyer-Client's interest. A Buyer Agent will
provide proper disclosures regarding agency representation and
other matters as required by law.
Standard C(7): A Buyer Agent will develop
contract negotiation strategies with his/her Buyer-Client, establishing
pre-set limits on key points of negotiation when that Buyer-Client
wishes to do so. A Buyer Agent will actively negotiate only on
behalf of his/her Buyer-Client.
Standard C(8): Before submitting a contract
offer to a Seller, a Buyer Agent will counsel his/her Buyer-Client
regarding the time requirements specified in the contract and
will encourage that Buyer-Client to have professional inspectors
inspect the property if the contract is accepted.
D. SERVICES PROVIDED IN THE ESCROW-TO-CLOSING
PHASE
Standard D(1): A Buyer Agent will counsel
a Buyer-Client regarding the types of home inspectors, the suggested
criteria for selecting home inspectors, and the comparative costs
of inspection services. A Bce="-Client will select real estate
inspectors. A Buyer Agent will encourage his/her Buyer-Client
to be present during inspections.
Standard D(2): A Buyer Agent will notify
a Seller or a Seller's Agent in writing of inspectors' findings
and of corrections/repairs mandated by a Buyer-Client. A Buyer
Agent will specify a Buyer-Client's desire to proceed or cancel
the purchase contract whenever such notification is required.
Standard D(3): A Buyer Agent will maintain
contact with a Buyer-Client's title company and mortgage company
to make sure that his/her Buyer-Client's interests are being protected.
Standard D(4): A Buyer Agent will review
a settlement statement with his/her Buyer-Client at or before
closing, if possible.
Standard D(5): A Buyer Agent will accompany
a Buyer-Client on a property walk-through before closing.
Standard D(6): A Buyer Agent will attend
a closing with a Buyer-Client. A Buyer Agent should be prepared
to support his/her Buyer-Client's position at closing.
Standard D(7): A Buyer Agent will keep
records of transactions for a reasonable period of time and will
provide this information to a Buyer-Client on request.
These Standards of Practice establish obligations
that include all those consistent with the "Common Law of
Agency" and are considered to be client-level, not customer-level,
services. These obligations are, in many instances, higher than
those mandated by law. If there is any case where the law requires
a greater obligation than these Standards of Practice, then the
requirements of the law must be followed. It is the duty of each
individual Exclusive Buyer Agent to make himself or herself aware
of the laws, which may affect him or her. The BUYER'S
BROKER will never represent a
seller, and will never have even a casual relationship with sellers,
which could cause confusion and misunderstanding as to whom we
represent.
