Justin Winter’s Carolina Lake and Mountain Blog

SC Agency Law — Customer or Client - which choice is best for you?

Hi Dave,

Thank you for your detailed message and I was interested to read your thoughts about working with REALTORS® from an Agency Law standpoint.  It doesn’t sound like the REALTORS® you’ve worked with have taken the time to give you a detailed explanation of South Carolina Real Estate Agency Law.SC Real Estate Agency Law (brochure attached) is governed by The SC LLR and we real estate licensees have a legal obligation to follow the rules.  The attached brochure (please read) outlines the difference between being a CUSTOMER of a brokerage agency and a CLIENT.  From your email it sounds like you wish to remain a CUSTOMER and work with as many agents as you like; thus the analogy of the public being able to go to any doctor they like.  The difference is doctors are eligible for payment every time they see a patient.  Real estate agents only get paid when they have a contract with a client — either a listing contract with a seller (and the property sells) or a buyer’s agency contract with a buyer (and the buyer purchases).  If neither happens we don’t get paid.  For example, you have spent time with REALTOR(R) “”John Doe” but he has not been paid a nickel for his time. You’re concerned that when you move from agent to agent you do not see the “full, unobstructed picture” because the agents under this type of relationship only wish to show their listings.  That’s called being a “Customer” of a Brokerage Agency and you’re absolutely correct.  The reason that we only show our listings when a buyer chooses to be a “Customer” and not a “Client” is because there’s no assurance we’ll get paid by a listing broker if we show their listing and you are not under contract with the agent as a Buyer-CLIENT.  Most listing brokers only compensate BUYER AGENTS, and that means that our buyer has to be a CLIENT for us to get paid.  Under your example, what’s stopping a buyer-customer from looking at property with me, consuming my time, then going to another broker to purchase the property as a Client? I would receive nothing when in fact I was the “procuring cause”.  Simply said, if we were paid every time a Customer-Buyer spent time with us (the way doctors are eligible to receive payment whenever they see a patient), then agents would show you all the inventory up front, and not just what they have listed.  If you would like to ensure that you see all available inventory and not just one agent’s listings, then find an agent whom you like and trust and sign an Exclusive Right to Buy (Buyer Agency Agreement).  You can then feel confident you will see every possible listing known to your agent.  If you choose one of the most knowledgeable agents, you’ll see All the listings that are best suited for you and you won’t waste your valuable time by running around with one agent after another, and becoming frustrated by the process.Any agent or broker worth having will give you an explanation of “Agency” when you first meet in person so that you clearly understand your options when dealing with real estate agents.  This is the first thing I explain to my prospects and we are required by law to provide this explanation “at the first practical opportunity when you and the licensee have substantive contact”.My company has approximately 70% of the MLS resales at The Cliffs and The Reserve.  There’s a good reason for that.  I would love to have you as a client of mine and can assure you I’ll leave no stone unturned in my search to find you exactly what you’re looking to purchase.

I hope this explanation helps shed some light on SC Real Estate Agency Law and you are now better equipped to deal with real estate agents.  Please contact me if I can assist you further in this regard.

Sincerely,

Justin Winter 

Broker-REALTOR(R)

Justin Winter & Associates, LLC