Since the State of Vermont requires us REALTORS to explain this topic upon first meeting each and every new buyer, I figured it worthy of some attention here.

State law requires us to present an agency relationship disclosure to a buyer upon first contact.  And usually when I present this form, folks ask me, “this isn’t one of those buying broker contracts, is it?.”  Luckily, our association came out with a new disclosure form as a result of this which states that “This is Not a Contract” right across the top.  Buyer broker contracts are 3 pages long, and can commit the buyer to an exclusive relationship to that firm, IF, the contract is written that way.

I can tell when people have seen quite a few properties in their VT search from the way they look at me when I present this form.  I don’t see why anybody in their VT search would want to work with anybody who is not their buyer broker.  People are often shocked when I inform them that they can be my client for a day, a week, or a year in their search of Montpelier properties and the surrounding area.  And unfortunately, many agents would like to take advantage of the exclusivity that the contract can provide, while missing the point of the fact that it’s a higher level of duty to the buyer.

And the most important point to remember here is that if you don’t work with an agency with a buyer broker agreement, that agency has a fiduciary responsibility to the SELLER to release information about you that could help the negotiating position of the seller.