Ask Phyllis: a blog series of frequently asked real estate questions.
Signing the Buyer Brokerage Agreement
Dear Phyllis,
I have been enjoying your real estate advice for years and look forward to getting your take on this scenario. My daughter called the listing office for a condominium in our area. She asked about the condition of the air conditioning, recent sales in the building, and questions regarding the homeowners’ reserves. The listing office told my daughter that she could not answer those questions without a signed buyer-broker agreement. The agent explained that this was just for this property, stating that if my daughter purchased just this property, this agent would be representing her.
It seemed odd, but my daughter signed the agreement, and the agent answered my daughter’s question. The agent directed my daughter to go to the open house that weekend, which she did. While there, my daughter struck up a conversation with the agent holding the open house. My daughter prefers to work with the agent she met at the open house, but can’t because of the agreement she signed. Does this seem unethical to you?
Margi
Dear Margi,
A buyer broker agreement is a legally binding contract that defines the relationship between a buyer and an agent. As of August 2024, the National Association of Realtors requires agents to have this agreement in place before they provide brokerage services, such as showing homes or giving specific advice.
However, your daughter asked basic property questions. Those questions—about the air conditioning, HOA reserves, and even recent sales—are factual in nature. In most cases, an agent can answer them without requiring a signed agreement.
That said, confusion still exists. Early on, many agents believed they could not share anything beyond public information without an agreement. Over time, that interpretation has shifted. Agents must avoid giving advice or discussing strategy without representation.
In your daughter’s case, the listing office likely acted out of caution. As a result, your daughter may now be tied to that agent if purchasing that property. I would not call the behavior clearly unethical. However, it led to confusion and limited your daughter’s ability to choose the agent she prefers. In the end, the rules were meant to create clarity. In situations like this, they have done the opposite.
