The 2009 Legal Scan, from the National Association of Realtors was just released. It is conducted every two years and is a survey in conjunction with a comprehensive research project of the current legal environment real estate professionals face. To no one’s surprise in our office, Agency Issues remained the top area of concern. 28% of survey respondents reported agency issues being a significant source of current disputes, with 35% anticipating that number growing over the next two years.

Top among the agency issues, breach of fiduciary duties remains a common source of licensee liability. This fact alone speaks highly of our chosen profession as exclusive buyer agents (EBA’s). The service we provide clients is clean, concise and clear as to who we owe a fiduciary duty to.

More than 50% of respondents indicated that breach of fiduciary duty was the basis for a significant number of current disputes, and more than 61% ranked the issue among their top three issues. It is also the top-ranked potential future issue, and two-thirds of respondents believe there is significant need for training.

In my opinion, an equal amount of training and education needs to be provided to the consumer, and once they understand the differences in the types of agency relationships available, the more consumers will seek an exclusive buyer’s agent, who has the ability to work and advocate for buyers on any property they have a desire to own.

Among the reasons respondents cited was the thought that there existed a disturbing relationship between the lack of understanding of fiduciary duties and the need to earn a commission. NO KIDDING!

However, although EBA’s give up half of the potential revenue source in this profession by not listing property, if we do a good job for a client, they will seek an EBA to make another purchase, as well as refer our specialized services to others whom they know are looking to make a real estate purchase.