Yes, you can technically work with more than one real estate agent when buying a home, but this is rarely a recommended strategy and often leads to complex legal and financial complications. A real estate agent is a licensed professional who facilitates property transactions. The complications arise because the industry is structured around agency agreements that prioritize a dedicated, exclusive relationship. Navigating the world of home buying with multiple representatives can quickly create conflicts over who is owed compensation, ultimately hindering your search for a property.
The Critical Role of the Buyer’s Agency Agreement
A Buyer’s Agency Agreement is a formal, legally binding contract between a prospective buyer and a real estate brokerage. This document is designed to formalize the working relationship, outlining the agent’s responsibilities, the buyer’s obligations, and how the agent will be compensated. The agreement establishes agency, which is a relationship of trust that requires the agent to act as a fiduciary for the buyer.
Once this agreement is signed, the agent is legally bound to uphold several fiduciary duties that place the buyer’s interests above all others. These duties include loyalty, which means putting the buyer’s financial and personal interests first, confidentiality, and full disclosure of all relevant facts about a property. The agent must also exercise reasonable care and diligence throughout the transaction process.
Types of Buyer Agency Relationships
The nature of the buyer-agent relationship is defined by the specific type of agreement signed, which determines the level of exclusivity and the rules for compensation. The most common arrangement is the Exclusive Right-to-Represent agreement. This binds the buyer to only one agent for a specified period and geographic area. Under this contract, the agent is entitled to a commission regardless of who finds the property.
A less restrictive option is the Exclusive Agency agreement. This contract grants the agent exclusive representation rights, but allows the buyer to purchase a home found without the agent’s assistance without owing a commission. The only type of contract that allows a buyer to work with multiple agents simultaneously is the Non-Exclusive or Open Agency agreement. Under this arrangement, the buyer is free to engage with any number of agents, and only the agent who is the successful cause of the sale is compensated.
Potential Risks of Using Multiple Agents
While a non-exclusive agreement permits working with multiple agents, the practical consequences can be detrimental to the buyer’s search process. A significant risk is the communication overload that results from receiving the same property listings repeatedly from different sources. This duplication of effort can quickly overwhelm a buyer and complicate the task of managing property viewings and inquiries.
Agents who know a client is not exclusively committed often deprioritize that buyer, resulting in a lack of dedicated service. Since their compensation is not guaranteed, agents may be reluctant to invest substantial time, effort, and personal resources into a search that another agent could ultimately finalize. This lack of singular dedication can mean receiving conflicting advice on pricing and negotiation strategies, which may confuse the buyer and weaken their position during a purchase.
Understanding Commission and Procurement Cause
The most significant complication of working with multiple agents is the potential for a dispute over the sales commission, which is determined by the concept of “Procuring Cause.” Procuring cause is a legal principle that identifies the agent whose efforts were the unbroken, continuous chain of events that resulted in the successful sale of the property. Typically, the seller pays the total commission, which is then split between the seller’s listing agent and the buyer’s agent.
When a buyer has interacted with more than one agent regarding the same property, a conflict can arise over which agent should receive the buyer’s share of the commission. The agent who showed the home first is not automatically deemed the procuring cause. Instead, it is the agent who maintained a continuous and active role in the negotiation and closing process. Such disputes are arbitrated by the local real estate board and can force the buyer to participate in the proceedings. While the buyer is generally not responsible for paying the disputed commission, the conflict can delay the closing process and create an undesirable legal entanglement.
Strategies for Buyers Who Want More Options
Buyers who want more flexibility should focus on optimizing a relationship with a single, highly qualified agent rather than engaging multiple representatives. The first step is to thoroughly vet a potential agent, asking specific questions about their experience in the desired neighborhood and their preferred communication style. It is important to establish clear performance expectations upfront, such as the expected frequency of communication and the speed of arranging property showings.
If a buyer becomes dissatisfied with the agent’s performance, the most effective solution is to address the concerns openly with the agent or their managing broker. A buyer should always review the termination clause within their Buyer’s Agency Agreement before signing, as this section outlines the process for cleanly ending the relationship. Most brokers prefer to release a client who is unhappy, and a written request for a mutual release is often the cleanest way to terminate the contract and move on to a better fit.