Went to an open house yesterday. When we were all done looking at the house the 2 realtors tried to make us sign some kind of form. It was covered in legalize and had a $500 cancellation fee. They said we had to sign it and when I pushed back they both started talking very fast and told us we had to. I told her we’re not signing anything and she removed the cancellation fee.
What the hell was this??
Odds are they were asking you to sign a buyer agency agreement. You’re not required to sign it, but they are required to explain agency to you before asking for your signature. You may want to walk away from this interaction, but it would actually help the rest of the industry if you contacted their broker-in-charge, asked questions, and reported the behavior. These agents are exposing themselves and their broker to legal liability. It’s important that their brokerage knows this is happening, as it also creates risk for buyers who may not realize the implications of signing documents presented in this manner.
“she removed the cancelation fee” - does that mean you did end up signing it?
The correct answer is “no.” My guess is it’s a contract to have you represented by them as the buyer, so that under the new law they get all the commissions, etc.
It’s NOT a LAW! It is a requirement for buyers to sign a BBRA if they want to see a home. Open houses should require a touring agreement form with no fees attached.
Buyers can cancel the touring form or BBRA at anytime!
Depending on the state you’re in, it could have been a few different forms… but most likely a Buyers Agency agreement… which are not required for open houses.
For your own personal knowledge, you are not required to sign a buyer’s agency agreement to attend any open houses. The form is for representation and if you do not want them to represent you you do not need to sign it. I can say this 100% because I am a realtor and these rules were established on a national level by NAR. Good luck out there! All agents are not created equal.
Sounds like a buyer’s agency agreement. Shady tactics to pressure you into signing. Good call refusing. Never sign anything you don’t understand, especially with fees attached. Find a different agent who respects your boundaries.
New laws require buyers to sign an agreement before they ever tour a house with a Buyers Agent. Certainly makes it very important to pick a realtor that comes recommended by someone you trust, you feel comfortable working with, and truly has your best interests at heart. Don’t sign anything at an open house…you made the right move.
So you should really contact the brokerage and have a conversation. At an open house, you wouldn’t be required to sign any form. The real estate agents don’t know what they’re talking about. They were likely going to tell you that it’s part of the new requirement, but they are mistaken since it isn’t required for an open house.