EVOLUTION OF BUYERS REPRESENTATION
Buyers Representation is now available in almost all locations across the United States, however that was not always the case. The Real Estate Buyers Agent Council (REBAC) which is an advocate for home buyers has played a leading part in creating the change to allow buyers to receive the same level of representation that was only available to sellers.
Before the availability of Buyers Agency only Sellers had access to representation in real estate transactions. Sellers received what is described as full fiduciary responsibilities from their agent. This includes what is best described under real estate law as obedience, loyalty, disclosure, reasonable care and diligence, confidentiality and accounting.
When Buyers participated in a real estate transactions they were treated as customers not clients by licensees, because at the time licensed agents only represented the Seller as either an Agent or Sub Agent.
Buyers Agency is now available to buyers and levels the playing field by offering the buyer all the same fiduciary benefits previously only enjoyed by the seller. Buyers will typically sign a Buyers Agency Agreement which will clearly state how the agency relationship functions. These agreements may also vary State to State.
Historic Milestones in Buyers Agency
1988: A Denver based Realtor Barry Miller becomes the founder or REBAC. An organization that supports buyers agency and provides advocacy and training.
Mid 1990’s : Through a growth in Public Interest the Realtor Association recognizes the need to lobby for changes in State Regulations moving away from Seller Sub Agency and more towards direct Buyers representation.
1996: REBAC is acquired by the National Association of Realtors and lobbies for change in real estate license law and agency practices. These changes are implemented through the Realtor Code of Ethic and has had a dramatic change in transforming how real estate brokerage does business in many states across the country. The end result is better service and representation for home buyers.