Understand terms before signing with real-estate agent

Ilyce Glink and Samuel Tamkin

Q: We are seeking homes to buy, and one of the real-estate agents we interviewed wants us to sign an agency agreement form that will commit us to working with him. What are your thoughts on this type of document?

A: We are generally not in favor of these documents, but understand why some real-estate agents want buyers to sign them. These documents frequently will say that the buyer agrees to work with one particular agent for a certain period of time. If the buyer buys something without the help of the agent during that time, these agreements often state that the buyer’s agent is due a fee on that purchase.

Our problem is that while buyers and agents might get along in the beginning of their working relationship, the relationship can turn sour for any number of reasons. We think that buyers should have the option to find a different agent to work with on the purchase of a home. Some buyer agreements state that upon the termination of the arrangement, the buyer won’t owe a fee to the agent if the buyer uses the services of another agent.

You have to evaluate the agent who wants you to sign the document and determine whether the agent is right for you, how long you are bound by the terms of the agreement to work with the agent and on what terms you can break the arrangement.

Send questions to Realestate Matters, 361 Park Ave., Suite 200, Glencoe, IL 60022, or contact author Ilyce Glink and lawyer Samuel Tamkin at www.think glink.com.