Lastly, if you are an agent... please don't copy, paste and not so subtly change some words and call this your own. I have made this public so it can be shared if desired. I hate that I even have to say this, but it has happed a few times.

1) The industry is going through some changes and on July 1st the state of Indiana passed a law requiring real estate agents to have an agency agreement signed when representing a buyer. Agency more or less defines the relationship which exists between a buyer and a real estate agent. There can be different types of relationships but there are 2 which are most common. Exclusive Agency where a buyer solely works with an agent based on specific terms or No Agency in which there is an agreement between both parties that there is no obligation/relationship either way. Both meet the requirements with the state law as well as #2 below if IAR (Indiana Association of Realtors) forms are used which you would see as a footnote on the form itself.

2) The National Association of Realtors also has made some changes which take the Indiana Law a bit further by saying that Realtors need to have an agency agreement in place prior to showing a home. Any home. The same variations pertaining to types of agency still apply with the main difference being a timeframe for when an agreement needs to be completed... prior to showing a home. This insures that both parties understand what is expected of each side. The agent has the ability to know they aren't working for free (unless it's No Agency) and the buyer knows that they have a dedicated professional who is working solely on their behalf (if it's Exclusive Agency). They also know for what amount of money and for what timeframe.

3) Everything in an agency agreement is negotiable. Examples of items within an agreement which are negotiable would be fee, timeframe, price range, geography, etc. It is possible that a buyer could have 1 to 10,000+ agency agreements in place with 1-10,000+ agents. As long as none of those agreements overlap each other... you are golden. How? You could have agreement with Agent A for 123 Main St, agreement with Agent B for 456 Main St, etc. You could have an agreement that expires tomorrow and another that starts the following day. You could have an Agreement with Agent A for 0-$50k and with Agent B for $51-100k, etc You get the point.

4) There are some situations where you don't need an agency agreement to see a home. You are free to walk into an open house without an agreement (although you may be asked to sign in, but that is different). You don't have to have one to call a for sale by owner. You don't have to have one to go to a new construction model home. While all of these are "ok", they are far from optimal or recommended. All of these situations would benefit from having an agent, your agent with you. So many times buyers talk too much and give up massive leverage because they just didn't know better. There are dozens more examples of ways an agent can protect your interests in these scenarios.

5) Agency agreements have the ability to be terminated or amended. There are limitations and rules to this, but this can be a conversation you have with the agent.

6) A poor agent will put an Exclusive Agency Agreement in your face and indicate that you must sign it which may only be partially true. A good agent will take the time to educate you on all of the items above to insure you have a working understanding of what you are being asked to sign and why.

I hope this helps remove some grey. I'm sure it's not perfect, but it's late as I write this and I reiterate that I am not an attorney and this is not meant to be legal advice.