Beware of Buyer’s Agents

Integrity and honesty is the hallmark of any good real estate broker. Recently, some less scrupulous agents are claiming they are “buyer’s agents” even though they are paid by and really represent the seller. Please beware; unless the broker has fully disclosed and signed an agreement with the buyer and are paid by the buyer, they are not a “buyer’s broker”.

 In New York, a licensed broker is usually paid by the seller and owes his loyalty to the seller. As a sellers broker, you are often placed in a position of responsibility for the safety of the seller and of their property.

 It has happened to me that a friend or relative of a buyer, who is a agent, has called me and asked for a commission on the sale claiming that he is a buyer’s agent. Usually, they have had no connection with the purchase. They often use their connection to the buyer as a type of extortion. This is a direct violation of the NY Laws of Agency; you can not be paid by the seller or the seller’s agent and still represent the buyer! But more important, while they tell the buyer that they will help with the purchase of the property, they are doing the opposite by adding costs to the seller. 

Sometimes this interloper will claim he is a “dual agent”. Again he must fully disclose this fact to both sides and must have a written agreement to this effect. It behooves you to find out, who is paying for his services. Remember money talks and it may not be talking for you!

 Ask yourself, can they honestly negotiate on your behalf if they are paid by the seller? And who are they representing, besides themselves?!?

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