Why You Should Be Represented
by a Licensed Real Estate Agent

At DMS Properties, LLC Residential Real Estate Services, our licensed real estate agents help people all across Maryland buy, sell, and rent homes.

We follow state laws set by the Maryland Real Estate Commission (MREC), which make sure agents are trained, professional, and act in the best interest of the public.  Most of the forms we use come from Maryland Realtors, our state association.  These forms help protect you and make sure everything is done the right way.

One of the most important forms is called the Exclusive Right to Represent the Buyer/Tenant Agreement.  This form is used when someone wants to work with a licensed agent to help them buy or rent a home.  Once you sign it, you become a client, and we’re officially working for you, not just helping out.

If you’re a client and want to see a property that we also have listed, you may also be asked to sign a Consent for Dual Agency Disclosure.  This just means we’ll explain clearly how we’ll treat both sides fairly.

Why This Matters

We strongly recommend that everyone looking to buy or rent a home in Maryland work with a licensed real estate agent.  It gives you someone on your side who knows the rules, protects your interests, and helps guide you through the process.

Want to know more?  Check out “Why You Need a Trusted Real Estate Professional in Your Corner.”  Or better yet, reach out today and let’s talk about how we can help you!

Highlights of the Agreement

When you decide to work with a licensed real estate agent from DMS Properties, LLC Residential Real Estate Services, we’ll ask you to sign an Exclusive Right to Represent the Buyer/Tenant Agreement.  This form makes it official that we’re working for you.  Here’s what the most important parts mean:

Paragraph 3 – We Represent You — This paragraph gives your agent permission to represent you as a buyer or tenant.  It also says what type of property you’re looking for (like a house, condo, or apartment).

Paragraph 4 – How Long the Agreement Lasts — This part explains how long the agreement is in effect.  You and your agent will choose a start and end date that fits your needs. It can last up to 90 days or longer, or be as short as 24 hours.  We’ll help you choose what’s best for your situation.

Paragraph 5 – What You Agree to Do — As a buyer or tenant, you agree to:

• Work with ONLY one agent (no switching back and forth);
• Share financial information that’s needed to help you buy or rent;
• Understand that some homes may be listed as “Coming Soon”, and we’ll explain what that means

Paragraph 6 – What We Agree to Do — This section lists your agent’s responsibilities, like helping you find the right property, giving you honest advice, and protecting your interests every step of the way.

Paragraph 7 – How the Agent Gets Paid — Starting August 15, 2024, commissions (agent pay) are no longer automatically paid by sellers or landlords.  That means how we get paid will be clearly explained in this part of the agreement, and we’ll make sure you understand everything before you sign.

Still Have Questions?  We’re here to walk you through it, step by step.  Contact us today and let’s talk about how we can help you buy or rent your next home with confidence!

How Does Agent Compensation Work?

We know that the part about paying commissions in Paragraph 7 can sometimes confuse or worry people.  But skipping this agreement can actually put you at a disadvantage!  Here’s why:

Without this agreement, when we show you a home to buy or rent, we are legally representing the seller’s or landlord’s interests, not yours.  That means you don’t have your own agent working just for you.

How Compensation Really Works

All commissions go to the Broker at DMS Properties, LLC Residential Real Estate Services first.  Then, the Broker pays the agent.

• For buying a home or land, our buyer client usually pays 2.5% of the purchase price.
• For renting a property, the agent’s pay is 30% of one month’s rent.

Before we show you any homes or rentals, we ask the listing agent if the seller or landlord is offering to pay part or all of the agent’s commission.  If the seller or landlord offers to pay some or all of it, that amount reduces what you owe.  In many cases, you don’t owe anything out of your own pocket.

Here’s an Example — Say you want to buy a $200,000 home.

• The full 2.5% commission would be $5,000.
• If the seller offers to pay 2% ($4,000), then you’d only owe $1,000.
• If the seller offers the full 2.5%, you owe nothing.

We always let you know if a property offers less than the full commission, so you can decide if you want to keep looking or pay the difference.

Have Questions?  Don’t worry!  We’re here to help you understand this and make the best choice for you.  Contact us today, and we’ll explain everything in detail.