SLO County Homes – Flat-fee buyer and listing services

FAQ​

Unrepresented Buyers

An unrepresented buyer is someone who hasn’t signed a formal agreement with a real estate agent /brokerage to represent them in the home-buying process. This means they don’t have an official buyer’s agent working on their behalf. Unrepresented buyers can still view properties and submit offers independently. However, it’s important to note the following:

Viewing Properties:

Unrepresented buyers can view properties with listing agents or attend open houses. However, the listing agent represents the seller, not the buyer. During such viewings, the agent is working to benefit the seller, and communication with the agent isn’t confidential. Ask the listing agent that you want to use CAR Form OHNA-SI. This is a disclosure form stating that the listing agent that’s showing you the home does NOT represent you. You want to make sure the listing agent agrees that they are not representing you.

It’s going to take some time for everyone to get up-to-speed on the new “post-settlement” era of real estate. I’ve heard listing agents are telling unrepresented buyers that they a required to sign an agreement before they can show you their listing. This is not true. The listing agent is working for the seller when they show the home, not the unrepresented buyer.

Buyer Representation Agreement (Form BRBC)

This agreement formalizes the relationship between a buyer and a real estate agent. Here’s a breakdown:

Representation Period:

This is the time frame during which the broker represents the buyer for specified property types. For example, if you agree to a 3-month representation period for single-family homes in San Luis Obispo, the broker will represent you for that duration.

Continuation Period:

After the Buyer Agreement is terminated (expired or canceled), the Continuation Period dictates how long the broker is entitled to commission for properties they were involved with. This is usually negotiated and specified in the Buyer Representation Agreement (e.g., 30, 60, or 90 days). During  this period, if you  purchase a property that the broker was involved with, you might owe a commission to the broker even after the agreement has ended. The broker must provide a list of broker-involved properties to the buyer within 5 days of termination.

Exclusive vs. Non-Exclusive Agreements

Non-Exclusive Agreement:

This allows buyers to work with multiple agents and is less restrictive when working with a single agent. The broker who was involved in the transaction gets the commission. This type of agreement is flexible and can be terminated immediately or as agreed upon by the buyer and agent.

Non-Exclusive Timeline Example:

  • Representation Period: 3 months.
  • Termination: Immediate.
  • Continuation Period: If set at 30 days, this period begins after the agreement terminates. The agent provides a list of involved properties within 5 days of termination.

Exclusive Agreement:

The buyer commits to working only with one broker. Any property the buyer purchases the agent gets commission, whether or not they were involved with the property. When the buyer submits a notice of termination, there is a 30-day wait before termination takes effect. If the buyer signs a new agreement with another agent before the 30 days are up, the buyer may be liable for multiple commissions.

Timeline Example:

  • Representation Period: 3 months
  • Termination: Requires a 30-day notice. During this period, the buyer can’t enter into another buyer representation agreement without risking paying multiple commissions.
  • Continuation Period: Similar to non-exclusive agreements.

How Our Buyer Service Works

When a buyer is ready to buy a home:

Research & Prequalification:

The buyer conducts online research and obtains a prequalification letter from a lender.

Contact Us:

The buyer reaches out to SLO County Homes

Non-Exclusive Agreement:

We send the buyer a non-exclusive Buyer Representation Agreement to sign

Property Tours:

We begin scheduling and touring properties with the buyer, help find the buyer the right home, negotiate the best price for the buyer, attend inspections, and manage the transaction until escrow closes.