I think you and I discussing “fiduciary” and how WA doesn’t require it, though some like I “can’t help doing it”, educates the consumer regarding not expecting it from all.

If the State doesn’t require it, then all do not deliver it. I do still find fault with the State NOT requiring it. In one way we are “perceivedly” the BEST life has to offer, being the only State with representation at first contact. What a beautiful stance. And then I see that some alter that message to “ONLY” if you sign a contract.

How can a State Stand Up and Shine as the ONLY State with representation as the default, when the practitioners dilute it to something lesser? It just floors me.

Reba…don’t take this personal. I’ve been “on this” since I attended the ABR class and they taught that buyers are only represented if they sign a contract. I say NOT in THIS State…that is just not true here.

Reba,

I disagree with your analogy regarding legal relationships. Rendering legal advice and not the signing of a Fee Agreement is the start of the attorney-client relationship.

Likewise, according to the Agency law, the buyer agency relationship begins upon you providing “real estate brokerage services” to a buyer, regardless of when you actually may sign a buyer’s agency agreement. “Real estate brokerage services” are defined as any service for which a real estate license is required. As a result, the minute a real estate licensee provides a buyer information on a house that might meet their criteria in the hopes of procuring that buyer, the licensee becomes their agent. There could be other examples but that seems to be one that is very clear. As an agent, unless waived in writing, the licensee now has the obligation to “make a good faith and continuous effort to find a property for the buyer” unless the licensee terminates that relationship.

-Russ

There is a difference between a client and a prospect. Clients we work with sign an agency agreement – either a listing or a buyer’s agreement depending on their transaction. Prospects might be people who showed up at a class we conducted but who have told us they aren’t ready to move forward yet but they’re interested in the market. They could be a referral from a former client that liked our services and they had a friend that showed interest. It could be the person signed up for our newsletter via the Internet so they’re part of a general prospecting marketing campaign. Clients are the people that have met with us, gone through a pre-approval process, given us extensive details (typically) about what they’re looking for in a property and have shown that they are ready, willing, and able to buy. When I say that we send out a bulk email to others after giving our clients first opportunity it is this scenario that I’m describing.

Many agents have a pool of prospective clients but they may not yet have moved from “I’m thinking about it” to “I’m ready to sign an agreement with you” stage. Agency is a transaction based relationship – if someone tells us they’re just “interested” in investments it doesn’t mean that we count each of those people as a client – they are a prospect until they’ve gone through our usual process and signed an agency agreement. Not far off from the parallel of someone putting down a retainer on an attorney. The attorney doesn’t represent you till this happens and you sign an agreement. In our case, you sign an agreement but we don’t get paid until, or unless, someone buys a property.

Prospects that aren’t signed clients know that we aren’t working specifically for them until we sign an agency agreement – they are told so in their meetings with us.

Then how could Reba justify making sure all the buyers who signed contracts, get to see houses before telling “the others”. Isn’t that like saying…here are the houses no one wants?

I must not be reading Reba’s comment correctly, “‘If there is a particularly good property we will make sure our signed agency clients see it before we send it out to prospective folks as well. This way we make sure our clients have preferential treatment and they value that we treat them in this manner.”

Reba, who are those other people who are getting info after the people who signed agreements? Is there a disclosure to them regarding their placement in “the system”?

There is no difference in the duties owed to a buyer based on whether or not you have a written agreement. If you are an agent, you are an agent….

Russ

Reba,

Do you advise buyers you represent without contract that they are put behind those who sign contracts? Sorry if I missed that. Going back up to read that again. Doesn’t WA Stature require you to represent them without contract? On what basis to you put them “second”. Wouldn’t it be more ethical to refer them to another agent who doesn’t do that?

Here is the issue. Throughout your post, you use the term “our client”. If “our” means you and your partner, and both of you are forming an agency relationship with the buyer, then what you are doing is not permitted. While you can certainly show the same property to competing buyers, a buyer’s agency duty of loyalty would prohibit writing up an offer for a buyer when you have already written one for another buyer.

Russ

Clearly ALL of my clients view my role as putting their interests ONLY and my monetary interests NOT. Consequently I hope you are incorrect that most consumers do not want this, or view their relationship with their Real Estate Professional differently.

I don’t think you would expect that…in fact I do not think you would want that. But I think you are more the rarity than the norm, in my experience.