Specific Duties of a Buyer's Agent

Mike
I would think that if you close 50 transactions a year and work with several agents you would have a list of your requirements down pat. Sounds like you just want a way to prove that the agent dropped the ball.

I suggest you get your license and make sure that nothing goes wrong again.

A signed Buyer's Representation Agreement will spell out the duties your Realtor(s) owe to you. Within that agreement if you desire to have your Realtor be responsible for additional duties customized to your situation, these would be placed into the "Special Provisions" section of the Buyer Representation Agreement. The duties outlined within the contract between you and your buyer agent(s) will fall within the canons of real estate agency: Obedience, Loyalty, Disclosure and Diligence, Confidentiality, Accounting, and Reasonable Care.


Based on your post it seems like the areas of accounting and diligence is where the ball was dropped. Accounting includes many things such as keeping the principal abreast of all the contract deadlines and following up with the various parties involved before any deadlines so as to avoid missing deadlines. Accounting and diligence also includes communication between the parties to insure each person knows what their responsibilities are and assisting client when needed to meeting their obligations.

Have a frank conversation with our Realtor(s) about your expectations of them, and enter into written Buyer Representation Agreements to avoid these misunderstandings in the future.

I wish you much success.
vm

Buyer's Agent:As a fiduciary, a real estate broker is held by law to owe specific duties to his/her principal (the person who they are representing), in addition to duties or obligations forth in a listing agreement, buyer representation agreement, or other contract of employment. Subagents of the broker also owe the same fiduciary duties to the broker's principal. These specific fiduciary duties include:

1.Loyalty-Must do everything possible to gain an advantage for the Buyer.

2.Obedience-Must obey all lawful instruction of the Buyer, is not obligated to obey instructions from the Seller.

3.Disclosure-Must tell Buyer everything they can find out about the Seller including the motivation for selling and any reasons the Seller may have for wanting a quick sale.
Must tell Buyer everything they can find out about the property, including traffic problems, poor school system, high crime rates, etc.

4.Confidentiality-Must keep all information about the Buyer confidential, including the Buyer's ability or willingness to pay more for the property than they are offering as well as the Buyers motivation for buying.

5.Reasonable Care and Diligence-Must prepare themselves through education and study to competently represent the Buyer in all matters.

6.Accounting-Must account to Buyer for any money or documents entrusted to them.

If the agents your dealing with are the listing agents as well and are now intermediaries they have different fiduciary responsibilities.

Section 1101.559(a) requires the intermediary to obtain written consent from both parties to act as an intermediary. A written listing agreement to represent a seller/landlord or a written buyer/tenant representation agreement which contains authorization for the broker to act as an intermediary between the parties is sufficient for the purposes of Section 1101.559(b) if the agreement sets forth, in conspicuous bold or underlined print, the conduct that is prohibited under Section 1101.651(d) and the agreement states who will pay the broker. If the intermediary is to appoint associated licensees to work with the parties, the intermediary must obtain written permission from both parties and give written notice of the appointments to each party. The intermediary is also required to treat the parties fairly and honestly and to comply with TRELA. The intermediary is prohibited from acting so as to favor one party over the other, and may not reveal confidential information obtained from one party without the written instructions of that party, unless disclosure of that information is required by TRELA, court order, or the information materially relates to the condition of the property. The intermediary and any associated licensees appointed by the intermediary are prohibited from disclosing without written authorization that the seller will accept a price less than the asking price or that the buyer will pay a price greater than the price submitted in a written offer.

Moving Forward a lot of investors pick a few good agents (in case one is not available) to represent them on all their transactions and it becomes like clock work closing each transactions.

Good evening, Mike! I'm sorry about your experience but am happy that things are back on track.

I cannot speak for all agents, but below are what I believe should be the responsibilities of buyer's agents and buyers (I simply added to your list):

Agent Example:
1) Show properties
2) Write Contract
3) Submit Contract to Seller
4) )Obtain answer on contract within X amount of days.
4.5) Effectively negotiate if there is a counter offer
5) Get executed contract to Title company
6) Get Option Money & Earnest Money from Buyer
7) Deliver EM to Title Company
7.5) Deliver OM to Seller/Agent
8) Obtain Title Commitment within X amount of days.
9) Obtain Survey from Seller/ensure title company orders
10) Obtain HOA info/ensure title company orders
11) If applicable, negotiate repairs or price after inspection
11.5) Submit contract amendments
12) Track all relevant dates in contract & ensure performance at the appropriate dates
13) Keep buyer apprised of developments on a weekly basis (more often, if necessary)
14) Maintain contact with listing agent, title company and lender (if applicable) to ensure smooth transaction and on-time closing
14.5) Schedule and attend final walk-through
15) Communicate any discovered issues/problems to listing agent prior to closing and negotiate solution
15) Attend closing

Buyer Example:
1) Execute contract
2) Provide Option Money & Earnest Money checks to agent
3) Inspect Property
4) If working with lender, provide requested documents in a timely manner
5) Respond to buyer's agent/title company requests in a timely manner
5) Choose homeowners insurance company
6) Attend final walk-through
7) Attend closing with appropriate money/documents

This is not exhaustive, but are the main things that come to my mind. Hope this helps!

Andrea Usanga
REALM Real Estate Professionals - Sugar Land
Phone: (832) 577-4602
Email: ahinckson@yahoo.com
Web: http://www.har.com/AndreaUsanga
"Going the Extra Mile to Bring You Home"

I am sure each one makes there best efforts as possible. But as far as I am concerned, my duty is not done until the property is closed on successfully with least amount of stress to my clients. That includes following up with all the parties involved in the transaction, like lender, title company, etc.