Orlando Real Estate, Orlando Buyers Agent, Orlando Homes, Orlando Buyers Broker: What is Informed Consent in Real Estate?

What is Informed Consent in Real Estate?

 

What is REAL informed Consent in Real Estate? 

I cringe when I read comments from agents about how they give the buyer an exclusive representation agreement at the time of contract or a disclosure as to who they really represent after buyer picks the house they want to buy.

 

It's a bit late don't you think?

 

After showing homes, learning about the  degree of buyers motivation and the money in the buyers pocket it is too late to  slip in a exclusive agreement or agency disclosure.  

Letting buyers know about any choices or conflict of interest  should never be done after the fact.

It is simply too late for the buyer to make an informed decision, so they are forced to just go along...

 

Real Estate definition of informed consent

Informed consent is an agreement by a party to a contract or an element of the contract made AFTER the party has been advised of all material facts.

The issue arises commonly in the context of real estate agency disclosures.  Real Estate licensees can no longer simply point to the client's signature as evidence of their "informed consent".  It needs to be more.  Essentially it calls for a full and complete explanation to be given sufficiently that the client will truly understand their options in order to make an "informed" decision.

So...what is a Material Fact?

A material fact is one that in the buyers opinion, is so substantial or so important to the property value, that if known to the buyer, would have influenced the buyer to offer less money or reconsider the purchase altogether.  OR maybe even change agents so they are truly represented.

 

What matters is the BUYERS OPINION and not the opinion of the agents or the seller.  What one buyer may see as unimportant does not mean that all buyers will feel the same.

 

Giving a home buyer an agency disclosure or agency agreement at the time that they are ready to make an offer is NOT informed consent.  The home buyer needs to understand their choices before they make a commitment. 

 

Finding out the truth too late is not "informed consent," it is called misrepresentation.

 

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Representing ONLY the best interest of the Home Buyer...never the seller.

 Eve Alexander Orlando Buyers Agent

 

Comment balloon 10 commentsMike & Eve Alexander • June 10 2014 03:17AM

Comments

So true, the buyers need to be informed prior to signing anything with their agent.

Have a Blessed Day!!!!

Posted by IRMA Beltran, Your Real Estate Agent 4 Life Always there 4 You! (Century 21 M & M and Associates-Turlock homes Real Estate) about 4 years ago

Eve, a great explanation you have provided. I like to get it all upfront so we both know where we stand.

Posted by Teral McDowell (Referral Patners LLC) about 4 years ago

Irma:  I agree buyers should be informed.

Teral:  Upfront is when buyers like it...finding out later makes them distrust the agent.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Mike & Eve, I typically don't have buyers sign a Buyers Agency Agreement until they are ready to make an offer, but I do make them aware of their choices up front.  Perhaps I'm doing business a little on the edge, but I'm like most people (I think) and don't want to be pushed into signing anything when I first meet someone.  If a client will determine if they are comfortable working with me and either continue or fire me...I do inform them of their options up front and after several hundred closings it has never come back to bite me.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) about 4 years ago

Nick: I think at that point if they stuck with you so long, there is no need for them to sign an exclusive.  What for?  Thank you for at least being honest about it.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Nice post, Eve, this was a very good explanation on informed consent.  It's more than important to disclose things in advance.  Giving people a head's up is the way to build trust & rapport.

Posted by John Meussner, #MortgageMadeEasy Walnut Creek, CA 484-680-4852 (Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA,) about 4 years ago

Eve, these agreements should be given at the time of the first meeting, however, I explain how I work with buyers, and have them sign after the first day with me.    This gives the buyer time to get to know me and my knowledge.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) about 4 years ago

Mike & Eve,

You are truly the voice of authority and you are someone I would trust when it comes to Real Estate. Informed consent is a great topic and something every professional should practice. Suggested!

Posted by Patricia Feager, Selling Homes Changing Lives (DFW FINE PROPERTIES) about 4 years ago

Recent times when internet has so much gossiping and stuff, your content really refreshes me. estateblock.com

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