Federal Requirements for Agency Disclosure?
The National Association of Exclusive Buyer Agents (NAEBA) wants to make sure buyers and sellers know exactly who the real estate agent is truly representing in a real estate transaction.
The group sent a letter to Congress last week urging the leaders to include real estate agency disclosure requirements in mortgage lending reform bills.
“Too many consumers have no idea that when they contact an agent listing a home, that agent must do everything possible to achieve the best outcome for the seller,” NAEBA President John Sullivan said in a statement. “As a result, these consumers have no one involved from the beginning of the transaction who can advise them on negotiating techniques, price points or the acquisition of an appropriate loan.”
Some states, including Connecticut, have disclosure laws that are designed to protect consumers. In Connecticut, for example, agents aren’t supposed to show buyers any homes unless an agency disclosure form is signed that explains who the agent is representing.
NAEBA leaders say these agency disclosure laws aren’t working as they should be. Studies have shown that the majority of homebuyers aren’t given disclosure forms during their first meetings with agents, the group points out.
The NAEBA wants stiff penalties for real estate agents who violate agency rules.
I wonder how often Connecticut’s policy on agency isn’t being followed and how those violations are being handled.
At the same time, I don’t think local Realtors are going to be too thrilled about the federal government stepping in and dictating when the disclosure is made or having the feds come up with uniform definitions of agency relationships.
Am I wrong?