Practitioners Fall Short on Disclosure

(March 21, 2006) -- Only 30 percent of home buyers were given representation disclosures last year when they met with their real estate professional for the first time, according to the NATIONAL ASSOCIATION OF REALTORS®, despite the fact that state law typically requires practitioners to provide such documentation at the initial meeting.

NAR also reports that close to 50 percent of first-time buyers were not given disclosures at all or had no idea whether they had received one. Disclosures about representation are key, mainly because buyers who unknowingly provide the seller's agent with information about their finances or personal situations will be at a disadvantage during pricing and negotiations.

Buyers who do not receive such disclosures might pay too much for the home or be persuaded to waive contingency clauses and other protections. Experts warn buyers that the lack of a buyer-agent agreement means that the practitioner is probably representing the seller and looking to achieve a top-dollar sale.

One Silver Spring, Md.-based home buyer is currently battling a pair of practitioners from Weichert, REALTORS®, in court, because the buyer contends he signed a contract to purchase a home at an inflated price because the practitioner that he believed was acting on his behalf was actually the seller's agent.

The buyer is looking to recover his $34,000 deposit and $300,000 in punitive damages.

Source: The Washington Post, Kenneth R. Harney (03/18/06)