Even though the seller wants the highest
price at the best possible terms...and
the buyer wants the lowest price at the
best possible terms...and the firm "representing" them stands
to receive a doubled up payday for bringing
an, in-house, Designated Agency transaction together,
the legislature and the Governor saw this Realtor®
created, conflict-ridden, underdisclosing law as being good public policy.
Oh.......the miracles of Political Action
Committee (PAC) monies and a lapdog media that wouldn't report both sides of the
story, for fear of damaging their revenue streams from Realtors®! (Any idea how much Realtors® spend advertising in newspapers??? Think
full page, Sunday, spreads. Think MILLIONS of dollars...)
While there are many things about Designated
Agency that Realtors® don't ever want you to
know, the biggest secret has to do with
your (in)ability to get free of a Designated Agency
relationship, once you've found out that you
weren't getting all for which you bargained.
In short, as the Eagles sang in their classic
hit song Hotel California, "You can check out anytime
you like, but you can never leave."
Even though the law says you can leave the Designated
Agency relationship--at will--you have likely been secretly shackled by an undisclosed Realtor® to Realtor®
concept known as Procuring Cause.
Under Procuring Cause, the party--in this case
your former Designated Agent--that caused you
to wish to purchase the home, is most likely
going to be due the compensation that would have
flowed to the buyer's agent of YOUR choosing, had
you not been scammed, through underdisclosure, into accepting Designated
Agency in the first place.
You see, while the law says you can transition
out of Designated Agency, you won't likely find any unconflicted
buyer's agent who will step in to represent you,
as they can't get, and stay, paid.
The funds that were available in the transaction--funds
that come out of the monies you are paying to buy the home--are already reserved, if you will, for the
licensee who sold you on Designated Agency. There
is nothing you can do to change that...and nothing
the law can do either, as Realtors® have preagreed--in order to become Realtors®--to arbitrate commission disputes.
You see, if another agent would agree to represent you, they would do all
of the important work...take on all of the liability...get paid at closing, only
to receive notification--after closing--that your former Designated Agent is forcing them to
arbitrate, in an effort to take away their fee. An effort in which your former
Designated Agent will most likely win.
And, as most licensees will refuse to take a chance on losing a Procuring Cause case, you have, as a result, lost your right to unconflicted representation.
All of this, though, merely scratches the surface
of the issues that come with Procuring Cause
and Designated Agency.
To learn more about the theft of buyer rights that
comes with Procuring Cause, [Click Here] .
To learn more, in general, about the deficiencies of Designated Agency,
[Click Here] . (Note: The deficiencies of Designated Agency are very similar, if not identical, from state to state.)
For a live-action, easily understood, diagram of how Designated Agency works,
[Click Here] .
And...finally, if your computer has working speakers, you can listen to some of the more problematic aspects of Designated Agency by [Clicking Here] . Keep in mind that this is a large enough file that it may take some time to load/play. (You may find it to quicker to open your media player to directly input the web address of: http://www.buy-madison-real-estate.com/buyer_advocate.mp3 .)
more information on our Unconflicted Representation, please fill out our form.