District 99 Fondnazio - Test - CCARToday - Contra Costa Association of REALTORS

Consumers sidestepping BRBC agreements

Recently, I have experienced problems with “clients” signing multiple Buyer Representation agreements (BRBCs). If you have also noticed an upswing in this unfortunate trend I encourage you to spend some extra time with each potential client to explain the seriousness and binding nature of the contract to ensure that they are thoroughly informed, and confirm they have not signed a BRBC with any other agent. Because aside from your broker taking legal action, it is your best hope of protecting yourself and your fellow colleagues. I hope you take a few minutes to look over the articles I’ve highlighted in this message so you understand all the ins-and-outs of the BRBC form.

Feel free to contact me directly to discuss any of these issues and remember to check out the CCAR calendar for upcoming events and education opportunities.

Best Regards,

John

When in doubt, always call the C.A.R. Legal Hotline for answers to your toughest business questions.

How to talk to potential clients about the BRBC

To streamline the introductory process and ensure that potential clients have all the relevant information they need to enter into the BRBC agreement, it’s helpful to review your basic Code of Ethics principles: Duties to Clients and the Public, and Duties to REALTORS®. Additionally, remember the importance of full disclosure–providing a thorough description of the form and its legal implications. To further support this effort, and reinforce your commitment to ethical business practices, advise your potential clients that you have a professional obligation to determine whether they are subject to current exclusive agreements (see NAR Code of Ethics, Article 16 SOP 16-9 and 16-13).

Exclusive, or non-exclusive? That is the BRBC question

There are two main differences between the exclusive and non-exclusive BRBC agreement.

First, under a non-exclusive agreement (which the BRBC defaults to), a prerequisite to the broker earning compensation is that there must be “broker involvement” with the property. On the other hand, under an exclusive agreement, the broker has the right to compensation even if the buyer acts alone or with a different broker in buying a property during the representation period.

Second, unilateral cancellation under a non-exclusive agreement is effective immediately upon receipt of the cancellation notice (unless otherwise agreed in the BRBC). MORE >

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CA Real Estate Disclosures Required by Law | VIRTUAL | Mar 19 | 10:00 am – 1:00 pm | $20 | Instructor: Joel Carlson | Make sure you know which C.A.R. forms will be most helpful when you’re trying to disclose. Attendees will review crucial disclosure requirements commonly seen for the sale of 1 to 4-unit, owner-occupied residential property. | REGISTER >

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