Required to sale or show? I should clarify that I’ve usually signed and amended it during pend stage so agent gets commission and has documentation that I’ve agreed to all the terms within. I also limit it to just the property in question so if things fall apart it does too.
Requiring it to show, seems like a mess that will slow things down or people will just ignore it/backdate it like they do so much already to beautify things for underwriters and such.
We're kinda waiting to see what form it will take, but there seems to be a belief we are headed toward a required to show type scenario. I think it was one of your earlier comments that said something I completely agree with - clients should always have the ability to walk away from an agent they no longer want to work with, and should not feel pressured into signing an agreement that might create a binding relationship they don't want. Already we're strongly encouraged by our state legal advisor and MLS best practices to use buyer agency agreements - but I (mostly) don't for exactly the reasons you stated - if a client wants to work with me, they will, and if they don't, a piece of paper shouldn't force them. The general public is scared / distrustful enough of Realtors, and now we're supposed to put this legal document in their face the moment we meet them? Sounds like a good way to further create distrust and alienation.
I suppose once it becomes norm, everyone will see it as norm and go along. I do agree with you on being turned off by initial interaction being a rep form. They're pretty easy to void. The various RE lobbyists are pretty strong and continually pushes for laws like your discussing to essentially force people into utilizing agents.
I have to get creative to get the commission into my pocket when I don't use agents. First, the other side usually does have an agent and explaining to them that I want the commission and it's already a sunk cost is usually a nightmare. I do it at the end, because otherwise it impacts negotiations "but your keeping the commissions already". (No I'm talking to you, doing the work of an agent, so I should get paid just like you are; it doesn't cost your seller anything more than the transaction costs they were already planning - in reality, I know it's because the sell side hears no agent and thinks "I get to keep it all").
In my state, it says only licensed RE brokers and attorneys can collect commissions. I'm neither. But we also have a clause in the law that allows commission rebates. So, I typically just pay an attorney a small flat fee to collect the commission and rebate it back to me. It can be a pain but then I realized I don't have to tell the sell side anything, I now have a standing agreement with my attorney who will collect the buy side commission and subtract out the flat fee part and rebate the rest to me. I just put his info on the offer as my agent and give him a heads up a few days before close. It works pretty well.
Requiring it to show, seems like a mess that will slow things down or people will just ignore it/backdate it like they do so much already to beautify things for underwriters and such.