Directory:

Home Page

Meet Us

Savings Results

Home Buyer's Kit

New Okla. Law

FAQ(Important Questions

Experts Testimonials

How Are WE Paid?

OKC Area Properties

School Info

Area Attractions

Real Estate Web Sites

Military Relo.

Query Form

Our Clients Testimonials

Geographic Areas Covered

Relocating Elsewhere?

Oklahoma's New Law

Notice to Oklahoma Real Estate Buyers

The new law replaces the Common Law of Agency with Statutory Law!

This new law dramatically impacts YOU !!!

Do you know the new rules of the game?   The other "players" (Sellers & their Realtors®) likely do.  Would you enter a high stakes poker game with only you not knowing the rules?  This is perhaps the most "high stakes game," (i.e. the largest purchase), of your life.   It's your money that's at risk!  Your potential for loss is great!

The new law identifies the relationship of licensees when dealing with individuals in real estate activities which requires a license.  In this document, we will use the term "Broker" to describe all licensees.

Notice to Buyers:  If you do not have time to gain understanding of this new law, you may want to consider seeking the assistance of an Exclusive Buyer Broker, like Buyer Agents Realty, in order to eliminate the possibility of your being significantly damaged.  (If you'll study the rest of the material herein, you'll understand why.)

It is important to understand that, in using us, there truly will be a  DIFFERENCE!

An Exclusive Buyer Broker, by definition, never has a conflict of interest because we never represent Sellers.

Two Types of "Brokers Relationships" Under the New Law

Transaction Broker and Single Party Broker

1. Transaction Broker

The new law defines a Transaction Broker as a broker who provides services by assisting a party in a transaction without being an advocate for the benefit of that party.

?  What Does This Mean to You as a Real Estate Buyer?

By law, a Transaction Broker cannot be an advocate for your cause - cannot intercede on your behalf, over that of the Seller.  Why?  Because, by law,  they can provide only "neutral assistance" to you in a real estate transaction.

By law, a Transaction Broker does NOT have to obey your specific directions.

? What may be the result to YOU of using a Transaction Broker?  

(Let's call him John.)  Note: John is required to operate by the law.  One example follows:

Assume that you fall in love with a home and you want to make an offer on it.  You ask John to give you his best judgment of the actual market value of the home, his advice on how much to offer, and his counsel on the negotiating strategy.  Can he do so?  

No!  Because, the law says that he must remain neutral.  So, how can he give you, the Buyer, an unfair advantage over the Seller?   So, think!  Where does this leave you?  Note that we, as Exclusive Buyer Brokers, operating on YOUR behalf, provide this information routinely.

? Lack of Disclosure permitted by the new law.

Yes, it's true!  Your Realtor® is not required to disclose, until just prior to your signing a contract to purchase a property, that he/she is operating as a Transaction Broker, and thus is NOT providing services for your benefit.

Wow!  All this time, he/she has NOT been representing your best interests - and you didn't even know it!  You've arrived at this critical stage of purchase negotiation for the property that you're "dying to own"!  And you now realize that you have no one to "go to bat" for you - to negotiate in your best interests over that of the Seller.   Just understand that this can result in your being financially HARMED!

We believe that this lack of disclosure is a provision of the new law that is extremely unfriendly to the consumer!

? Why do we say that?

A recent Federal Trade Commission (FTC) study found that over 71% of all Homebuyers nationwide mistakenly believed that they were being represented by the real estate licensees showing them homes.

? Why such a widespread misconception?

Are people just foolish?  No!  It's just natural to assume that you're being represented by the real estate licensee showing you homes.

Therefore, without disclosure (until just prior to signing the Purchase Contract), the above FTC statistic implies that this trap could potentially be fallen into by a majority of Oklahoma Homebuyers.  It could end up costing you lots of money and/or grief!

? Why would you be willing to accept the assistance of a Transaction Broker, who is NOT your advocate, when buying a home?

2. Single-Party Broker

A Single-Party Broker is the only other kind of Broker allowed under the new law.

There are three major differences between a Single-Party Broker and a Transaction Broker, as follows:

1.  A Single-Party Broker will be an advocate for the Party for  whom they are providing real estate services.  They will intercede in that parties beneficial interest.

2.  A Single-Party Broker must obey the specific directions of the party, if it doesn't involve illegal activities.

3.   A written Single-Party Brokerage Agreement must be executed between licensee and the party.

IMPORTANT:  If NO written Agreement, the Broker is acting as a Transaction Broker, by definition and by law.

?  So, how can you protect yourself?

Always!  Always!

Note:  Don't let any licensee imply that there is little difference between the two types of Brokers.  That is simply false!  If you accept that premise, it may be to your great detriment and it may cost you money!

Use an Exclusive Buyer's Broker - a company who NEVER lists properties for Sellers.   We'll explain why this is so important later.

? Why is it Important that You use an Exclusive Buyer's Broker?

Even though you may now be educated enough to insist upon the services of a Single Party Broker to be your advocate, the following could easily happen to you, as a result of the new law:

Let's assume that you sign up a licensee on the condition that she will be your Single Party Broker.  Let's call her Sue.  Sue works for a brokerage company that takes listings from Sellers, in addition to assisting Buyers with real estate purchases.

You fall in love with a beautiful home.  Lo and behold, it is listed by the same brokerage company for whom Sue is employed.  You tell Sue that you want to make an offer on the home.

Then, BOOM, she came back with a bombshell!  Sue states that she is unable to assist you any further on this transaction as a Single Party Broker.  You will have to settle for her services as a Transaction Broker or find another company to assist you.

?  Why?  The reason is simple.

The Seller of the home you want to buy, hired another licensee Single Party Broker.  When this happens, the Buyer or seller, or both, must consent to the NEUTRAL assistance (without advocacy) of a Transaction Broker.  The new law does not permit the same brokerage company to be an advocate for both the Buyer and the Seller because of the obvious conflict of interest.  (Under the old law this was called dual agency.)

Now, the Seller states that he will not compromise his original position of having a Single Party Broker to be his advocate, to work on his behalf.

?  Why is the Seller's position accepted rather than the Buyer's?

From a pure business point of view, Brokers expect a greater rate of return from their investment in time/money from Seller's listings than from assisting the same number of Buyers.  (This is why there are so few Exclusive Buyer Brokers.)

So, you feel stunned, abandoned, and pressured because you know that a delay may result in your dream house being sold to someone else!

You must either...establish a Single Party Broker relationship with a different company OR "step down" to a Transaction Broker relationship with Sue.

This could cost you real dollars as well as grief!

Unfortunately, that's the real world situation that you're facing!

?  So, what's the Solution?

Hire an Exclusive Buyer's Broker specialist, a company that places a high value on Homebuyers, NEVER represents the Seller, therefore NEVER having a conflict of interest.  Then, you'll never get into the horrible situation above!

Say Hello to the Exclusive Buyer Brokers at "Buyer Agents Realty."

If you were to use us, we would be YOUR advocate, always on YOUR side, always representing YOUR best interests, doing our utmost to save YOU money, time and effort, as a Single Party Broker.

As an Exclusive Buyers Broker we choose to never list homes for sale (but can show you ALL homes that are listed).  Therefore, we have no conflicts of interest or bias concerning the home you purchase.  All of our efforts are directed to helping you find the best home, at the best price and on the best terms.

        Our Iron-Clad Guarantee to YOU:

                    We'll always be on Your side!

    We'll never represent Your opponent, the Seller!

We'll NEVER ask you to "step down" to Transaction Broker neutral assistance, as in the true-life example above!

In using us, you'll truly see a difference