Oklahoma Supreme Court Upholds Exclusive Buyer Broker Claims

The Oklahoma Supreme Court has issued a decision sharply critical of the Oklahoma Real Estate Commission, ruling that
not only does The Buyer Agent, exclusive buyer brokerage franchise, "save money" for Buyers, but also that the Commission didn't know how to read it's own laws.

The Exclusive Buyer Brokerage victory came after a Commission investigation of the Buyer Agent franchise owner Kenneth Snider of Woodward, Oklahoma.  The Commission claimed that The Buyer's Agent, Inc. advertising material was "false and misleading" because it claimed the franchise "saved buyers thousands of dollars." 

The advertising also contained the warning: "Beware of any agent who mentions the words 'dual agent', 'assigned agent', 'contract broker', 'facilitator', 'transaction broker', or 'designated agent'.  These are all methods of conducting real estate transactions which give the Buyer less than full representation."

The state agency determined that the statement was false and misleading and fined Snider $200. Mr. Snider and the Buyer's Agent franchise, based in Memphis, Tennessee, then filed a lawsuit against the Commission, asking that the decision be reversed.  The Commission prevailed in the district court and the civil court of appeals, but the case went to the Oklahoma Supreme Court , and it reversed the lower courts decision.   The high court found that The Buyer Agent had adequately proven, with consumer affidavits, that its service had saved homebuyers thousands of dollars.

The high court opinion stated, "We find that the statement in the booklet (The Edge) for which the appellant was sanctioned is neither false or misleading.  Sellers' agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. ...A buyer who relies on the seller's agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer."    "Accordingly, we find that the order of the Oklahoma Real Estate Commission is clearly erroneous, contrary to its own rule, and without evidentiary support and must be set aside."

The Buyer's Agent President, Tom Hathaway, in Memphis applauded the court decision and proclaimed the ruling "important for consumers and for all Exclusive Buyer Agents" across the country. This case will be cited for years to come by attorneys when Exclusive Buyer Broker claims are challenged by anyone trying to neutralize the benefits of full representation.