 Real Estate News and Advice |
| May 25, 2012 |
|
Need Product Help?
Local Guides
All Local Guides
Alabama Alaska Arizona Arkansas California Colorado Connecticut DC Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming |
by Peter G. Miller
Peter G. Miller
For several years there has been a debate within real estate regarding who or what may use the term "EBA" or "exclusive buyer agency." At first this may seem like an obscure dispute, as in "who cares?" But in fact, the matter has importance for buyers, sellers, and the brokers who work with them.
On one side we have those who argue that only licensees who never take listings are properly entitled to use the term "EBA." On the other side, we have those who contend that the term "EBA" can also be used by licensees who both represent buyers and represent sellers -- as long as such representation does not occur within the same transaction.
For a very long the practice in real estate was to have brokers represent only sellers. Why? Because at the end of a transaction the buyer got the property and the owner got cash -- money that could be used to pay brokerage fees.
The result was that you routinely had a situation where there was a broker who listed a home, and a broker who worked with a buyer, and they both represented the seller.
Why did the broker who worked with the buyer have an obligation to the seller? Because when the home was listed, the owner and the listing broker established a commission arrangement and the broker became an agent of the seller. The broker who assisted the buyer obtained permission to sell the property by becoming a "subagent" of the listing broker.
In the 1970s, brokers such as James B. Warkentin of McLean, VA began doing something different: They started to identify themselves as "buyer brokers" and began representing purchasers. Rather than being "sub-agents" of a seller, they became agents of the purchaser. Instead of working under the authority of the listing broker's contract with an owner, buyer brokers worked directly for purchasers.
While it may seem obvious today that buyers and sellers have conflicting interests and thus benefit from separate representation, at the time the concept of buyer brokerage was regarded as revolutionary -- and threatening. Some listing brokers refused to show their properties to buyer representatives, while others were entirely perplexed by the notion.
All of which gets us back to the term "EBA."
Within real estate are those who believe that use of the term "EBA" should be reserved for licensees who only represent purchasers and never take listings. On the other side, we have those who argue that the term "EBA" can be used by licensees who represent buyers one day and sellers the next.
Despite loud, lengthy, and repeated efforts to dance around the issue, the term "EBA" has not been copyrighted or trademarked. Period.
There have been good and honorable folks on both sides of this debate, but it's time to move on and not be distracted from the central question which concerns consumers: Will you represent my interests and seek the best possible price and terms for me in my transaction?
The Common-Sense Mortgage
The latest edition of The Common-Sense Mortgage is now available in bookstores online and off. In print for nearly 15 years and widely recognized as the standard consumer guide to real estate financing, previous editions have been described as "virtually in a class by itself" (The Philadephia Inquirer) and as "one of the best available guidebooks to the realty financing jungle," (The Los Angeles Times).
Whether financing or re-financing, whether you're a borrower, broker, or loan officer, this money saving, easy-to-read and well-organized guide is a necessity for anyone in the real estate marketplace. For additional information, press here.
Question Of The Week
Q: I am receiving a gift of property from a married couple. He lives in Florida and she lives in Ohio. What sort of deed do I need?
A: We know where the owners are located, but what about the property? The best approach is to contact an attorney in the jurisdiction where the property is located and review the nature and terms of the gift, and also your situation in terms of marital status (different rules may apply depending on whether or not you are married and where you reside), tax implications for the donors, and the deed option which gives you the strongest title claim.
Weekly Resource
Ever need a good reference to find that special word? You can do no better than A Web of On-Line Dictionaries, a site with links to hundreds of language reference works, including those which discuss Vulcan and Sumerian.
Published: October 19, 1999 Use of this article without permission is a violation of federal copyright laws.
Related Articles: Editor's Note: This article reflects the opinions of Peter G. Miller only and not necessarily the views of this or any other publication, organization or Website owner. |
Real Estate News Network
Today's Real Estate Outlook
Mortgage Rates
30 Year Fixed: 3.83% 15 Year Fixed: 3.05% 1 Year Adj: 2.73% (U.S. Weekly Averages) Today's Headlines 10/19/1999 12:00:00 AM
 Spotlight
|
||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
|
for Agents
Readers' Choice
Our most popular recent articles
|
||||||||||||||||||||||||||||||||||||||
Must Buyer Brokers Be "Exclusive?"