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What advice would I give to an agent who may be representing a buyer?
Number one, sign an exclusive agreement with them. If possible, get your buyer to sign an agreement that they will pay you your three percent commission, regardless of who and what happens within the transaction.
Number one, that protects you and your income in the deal and all of your hard work should be rewarded.
Number two, the agreement date should always be updated every three to six months, even if it is a whole year contract.
Why? Because if something happens and you forget that that agreement has maybe expired or has lapsed or may be lapsing before the transaction closes now, you’re in a predicament that you’re going to have to renegotiate and possibly not get the best deal.
Number three, make sure everything is upfront and transparent. Having a relationship with a buyer, an investor, is a very sensitive thing.
As we’ve talked about before, relationships are everything so you want to make sure that you’re transparent about what you’re doing, how you’re doing it, and why you’re asking for documents, why you’re asking for signatures from your client.
So if you want to protect yourself as an agent representing a buyer, make sure you have your paperwork done upfront before you even take them out.