A practice change mandated by the National Association of Realtors as a result of a settlement with the Department of Justice means that all MLS participants (that's practically any agent you will run into) must enter into a written agreement with a prospective buyer before any buyer enters a home.
So how does this affect open houses? People don't necessarily already have an agent, they just want to see an open house. So what happens then? It's already been a very common practice for an agent to request a prospect to sign in and give basic information. But whether a buyer signed in or not, the agent would show the property and perhaps give a great deal of information about the property, pricing, perhaps some offer terms, just depending on what instructions the seller said to his/her agent.
But the situation will soon change:
The visitor may be requested to sign a non-agency disclosure/login sheet, a non-agency agreement, or a buyer representation agreement. As of the end of June, agents will have a new open house disclosure/sign in form for the visitor to sign, in which the visitor acknowledges that the listing agent does not represent the buyer, but the seller only.
If an unrepresented buyer has a more serious interest in the property and wants to work with the listing agent, then the prospective buyer may sign a full buyer/broker representation agreement effective for up to 3 months (it can be extended) for that and other properties the buyer may want to see because they are searching for a new home. Or the buyer may sign a limited agreement for only the open house property and for no longer than 30 days.
This is a new world for holding an open house, and the visitor may decide to sign nothing. In that case, the open house agent is advised to refrain from providing any information other than what is on the listing flyer, because to engage with more information could lead the visitor to believe the open house agent is acting as his/her agent. If the visitor really wants more information beyond what is contained on the flyer, then that information will be provided after the visitor signs in as described above. The open house attendee may also return after agreeing to work with a different buyer agent.
And, buyer/broker agreements are required prior to showing one or more properties in all situations where a buyer and an agent will be seeing properties together. While this practice is now mandated under settlement terms with NAR, it is fully anticipated that signing a buyer/broker agreement will become a California state law for any and all real estate licensees whether REALTOR member of NAR or not, as soon as January 1, 2025.
I would be happy to answer questions about the future of working with a broker, whether buying or selling, if you are anticipating selling or buying--just contact me via text, phone call or email.
Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996
