Buyer representation, builder warranties

George Stephens, CRB, and Charles J. "Chuck" Jacobus, JD | Advice columnists

March 31, 2008

Dear George: I've received a large inheritance and want to purchase real estate. How can I select a buyer's agent with confidence?

Answer: You are to be commended for seeking a licensed professional to assist you. Here are some steps to ensure you're well-represented:

Select a Texas REALTOR®. Not all licensees are REALTORS®, who are governed by a strict Code of Ethics.
Select a REALTOR® who has experience with the type of real estate you're interested in purchasing, and ask for evidence of that experience.
Enter into a written buyer representation agreement wit the REALTOR®.
Limit the market area, listed in Section 3 of the representation agreement.
Limit the term, listed in Section 4 of the agreement, to a reasonable period of time given the acquisition you are planning to make
Limit the transaction to one deal. Even if you plan to acquire more property, conduct one deal with the REALTOR® first and make sure you're satisfied.

Dear George: Is there a requirement for builders to guarantee foundation work for 10 years?

Answer: Yes. The 78th Texas Legislature created the Texas Residential Construction Commission. All builders must be registered with the commission and offer a 10-year foundation warranty. This requirement began on or about the effective date of the legislation, Sept. 1, 2003. For more information, check out the Warranties and Performance Standards of the Texas Residential Construction Commission (PDF).

E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.

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