Buyer Tool Kit
Evolution of Buyer Representation
Prior to the introduction of buyer representation (also called buyer agency), only sellers were represented in real estate transactions and received full fiduciary responsibilities from their agent, including loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accounting.
Buyers were brought into a transaction with assistance from licensees who treated buyers as customers, not clients, because they were acting as agents or sub-agents for the seller.
Even though buyer representation is now largely available to home buyers across the country, it wasn't always so. As an advocate for home buyers, the Real Estate Buyer's Agent Council (REBAC) has played a key role in creating that change and helping buyers receive the same level of representation in real estate transactions that was previously only enjoyed by sellers.
Buyer representation aims to level the playing field by offering full fiduciary responsibilities to buyers, typically by signing a buyer representation agreement. Details vary from state to state regarding how agency relationships are established.
KEY MILESTONES IN THE EVOLUTION OF BUYER REPRESENTATION INCLUDE:
- 1988: REBAC is founded by Barry Miller, a Denver-based REALTOR®. The organization supports buyer representation through advocacy and training, awarding the Accredited Buyer's Representative (ABR®) designation to agents who pass certain education and experience requirements.
- Mid-1990s: Public interest in buyer representation grows. REALTOR® associations lobby for changes to many state's real estate regulations, away from sub-agency towards direct representation of buyers.
- 1996: The National Association of REALTORS® acquires REBAC and steps up efforts to advocate for changes in real estate license laws and agency practices.
BETTER BUYING EXPERIENCES
By effecting substantial changes to the REALTOR® Code of Ethics, the National Association of REALTORS® has helped transform the way real estate brokerage is conducted across the country, ultimately providing better service to real estate home buyers.
REBAC continues to serve home buyers by providing valuable information resources on the buying process and helping connect home buyers with quali ed buyer's representatives. You can learn more about buyer representation by asking your Accredited Buyer's Representative or visiting REBAC.net.