FACTS: The listing agent asked her friend, who is licensed with a different brokerage firm, to host an open house for one of her listings.  The broker for the listing agent urges that the friend must get a buyer broker agreement signed for each person who views the home at the open house.  The broker for the friend has a different opinion, believing that written agreements are not required.

ISSUE: Is the friend required to obtain a buyer broker agreement from every person who views the property at the open house?

ANSWER: See Discussion.

DISCUSSION:

Hosting an open house for a property listed by a brokerage firm other than where the agent’s license is hung is allowed by the Arizona Department of Real Estate.  However, the practice is complex and the agent should strictly follow the broker’s guidelines in terms of agency disclosure and communication with prospective buyers.  For additional guidance, click here.

A signed buyer broker agreement is required only when the licensee represents the buyer.  Here, by simply hosting an open house, the friend will not be representing a buyer.  As a result, there is no requirement to have the open house attendees sign a written agreement.  However, if any potential buyer starts to work with the broker, a written buyer broker agreement would be needed before the buyer tours a home (including the house held open if the buyer leaves and comes back at a later time).