Sounds like you picked the wrong service as the only thing you care about is getting your property on MLS via them. I have done this several times and saved hundreds of thousands of dollars by doing so.
I’m not a lawyer but in the bulletin that was sent out by the state of NJ, we are REQUIRED to enter a “Brokerage Services Agreement” in all residential real estate transactions.
“A BSA is not required when the services provided by a brokerage firm are limited to providing a broker’s price opinion,
comparative market analysis, or a referral by one firm to another if the referring firm provided no real estate brokerage services in the transaction.”
I think that eventually we’ll have more clarification whether listing agents can do a showing for unrepresented buyers. But for now, I believe a listing agent can not allow an unrepresented buyer to tour a house outside of an open house.
That statement doesn’t mean much to me from a complete picture standpoint…on selling side the agent is in a BSA with the seller, got it…but how does the listing agent have anything to do on the buy side or a BSA there?
Are you saying the listing agent needs to check to see if buyer has a BSA with their buyers agent or like I said maybe just sign something indicating non agency representation…almost like when you walk in a production/tract home builder and sign in as having no realtor representation?
The listing agent, if they want to do any real estate service (exceptions of BPO,CMA, or a referral) with a buyer must have a BSA with them. Meaning that a listing agent can not do a private showing with a unrepresented buyer. They are allowed to do open houses where it is open to the general public.
With some help from Reddit I found it…what I was thinking was correct all along…look at 65 here. 61, 66 too.
You are wrong per what I posted from NAR.
- No. In this case, since the MLS Participant is only working for the seller, and not the buyer, the MLS Participant does not need to enter into a written agreement with the buyer.
- No. An agreement is not required because the participant is performing work for the seller and not the buyer.
NAR isn’t law. NJ has different laws and supersedes whatever NAR, a trade organization, says lol. NAR can’t fine you or take your license away lol. But NJ can.
But that FAQ is more confusing than anything else.
So an Listing agent who offers “access to a property on behalf of the seller” (65) is okay but if a listing agent who does a “home tour with a buyer” (62) is not okay.
Yeah, I don’t know about others but I’m going to listen to Trenton (https://www.nj.gov/dobi/bulletins/blt24_11.pdf) where it specifically says, you need a BSA for everything except CMA, BPO, and referrals.
I mean, we’re splitting hairs here. The practical matter is most brokerages are going to tell their agents that, company policy is we do not open any doors for unrepresented buyers cause we don’t wanna get sued.
LOL, not so sure about ‘most’…I bet ‘most’ will because they want to sell a home quicker and have a happy client.
Thinking more about this what most likely will happen is your brokerage on the listing side will either try to work out a BSA with the unrepresented buyer on the buy side (broker reps both sides which I hate) or have them sign something that they are representing self.
I agree that 62 is badly worded.
Reading it more I think 62 means if an agent brings/shows a home to a buyer they need to have agreement in place.
Good for you
A lot of brokerages are now super risk adverse in the wake of the settlement. Brokerages would rather lose a client than risk a lawsuit.
But does that include listing agents? I’ll ask around with lawyers and my broker but I think a possible workaround (65) is to contact the seller and have the seller make the request to the listing agent to open the door. That way listing agent did what the seller told them to do; not the buyer telling the listing agent.
Yes I would think with seller approval an agent acting on behalf of said seller can show a property to an unrepresented buyer. A good agent should bring this scenario up during listing agreement and get direction on it.
I think NAR wants this confusion because it will push most people who have no clue what is going on to just use agents on both sides.
Wouldn’t be surprised. I’m an NAR member so I won’t say anything lol. But every state would be slightly different as well. Hopefully I get a nice check coming from the settlement since I sold like 8 houses in that timeframe lol
I am also in Northern NJ. About to be licensed for the purposes of my startup, but I am a long time property investor and resident.
Unrepresented buyers do not need agent representation to buy or tour a home. However, a seller’s agent could choose to avoid showing homes to unrepresented buyers. I expect many agents to do so in the short-term, especially since there’s like literally no inventory of available homes, but as sales start slowing, this behavior will change.
Listing agents must make clear, if they show homes to unrepresented buyers, they represent the seller, not the buyer. As long as the listing agent is not representing the buyer (dual agency), they can show the home.
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Have you submitted all your claims?
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Hey neighbor!
20 days ago, yes. Now we may not legally be able to show a property on behalf of a seller. NJ law is stricter than the NAR as always lol. Also our laws are terribly written (like seriously who the hell bans airsoft/paintball guns?!?!) so I expect the AG to clarify.
Haven’t even started, but I will lol. I’ll get enough to pay for a @goat style payment lol
The understanding from my broker is different. But I’m not yet officially licensed yet, so maybe there’s some info yet to be passed along.
Care to share the startup?
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