Knowing how to effectively utilize the consumer guide in real estate can aid sales professionals in earning trust, establishing credibility and minimizing obstacles during the transaction process.
The guide outlines what the consumer guide is, why it matters, how to present it confidently to buyers and sellers and how it can help sales professionals strengthen their approach.
What is the consumer guide in real estate?
The Consumer Guide to Agency Relationships, commonly known as the consumer guide, is a document in the real estate industry that explains how agents and brokers work on behalf of their clients. This is a mandatory document in several states in the US, including Ohio and other states that oversee agency relationships.
The document explains the types of agency roles available, such as buyer’s agent, seller’s agent and dual agency. It also outlines the responsibilities of each party involved and the rights of the consumer when working with a licensed real estate professional.
In real estate transactions, although the consumer guide does not require a client to choose a specific agent, it should be introduced and acknowledged early on in the relationship, usually before any confidential discussions take place.
According to NVAR’s 2024 “Why Buyers’ Agents Are Important” webinar, your primary role as an agent is to protect your client’s interests. Framing the guide in this context helps set a professional, transparent tone from the beginning.
Why the consumer guide matters in real estate
In real estate, the consumer guide plays a strategic role. When used effectively, it offers three clear benefits:
It creates clarity. The guide clearly explains agency responsibilities, such as buyer’s agent, seller’s agent or dual agent, to ensure everyone is aware of who is representing whom. Eliminating any confusion early on sets realistic expectations and enables real estate professionals to recognize any potential conflicts or discrepancies before they become larger issues.
It builds credibility. By proactively providing the consumer guide demonstrates a strong commitment to compliance while acknowledging your client’s autonomy in making informed choices. Furthermore, exhibiting professionalism can set you apart in a competitive real estate market and establish a foundation of trust from the outset.
It ensures compliance. The consumer guide is mandatory in several states in the US, such as Ohio and must be provided before any meaningful discussions can occur. Presenting it at the right time ensures compliance with state regulations and industry standards, protecting your license and credibility.
Note: As reported in NAR’s 2024 Profile of Home Buyers and Sellers, 77% of repeat buyers and 67% of first-time buyers only interviewed one agent before deciding. Highlighting the importance of the initial meeting and the potential for an agent to stand out through the use of a consumer guide
When managed effectively, the consumer guide becomes a valuable asset that enhances your sales process. It provides a straightforward and impactful way to improve client relationships and drive successful real estate transactions.
When and how to present the consumer guide
When engaging with clients in real estate, the timing and the delivery of the consumer guide to agency relationships are crucial. Ideally, introduce the guide during the initial consultation or first meeting with potential buyers or sellers, such as during the first sales call or sales meeting.
As mentioned in the Ohio Division of Real Estate & Professional Licensing, agents must provide this early in the process. It isn’t advisable to wait until the paperwork stage or include it with other closing documents, as it may seem like an insignificant addition.
Instead of simply presenting the guide, incorporate it into your discussion about the real estate process and your role as an agent. A clear and confident explanation of the guide’s contents will foster trust and demonstrate your commitment to ethical practices.
Key sections in the real estate consumer guide
The consumer guide typically includes key sections that explain the stages of the real estate transaction process. These sections can be summarized as follows:
Section | What it Covers |
Types of agency | Defines buyer’s agent, seller’s agent, dual agency and sub-agency. It also explains the implications of each type of agency on the transaction process, helping consumers understand their options and potential conflicts of interest. |
Duties of the agent | Outlines fiduciary duties such as loyalty, disclosure, confidentiality and accountability. Additionally, it highlights the agent’s responsibility to act in the client’s best interest and provide guidance throughout the transaction. |
Consumer rights | Explains the client’s right to choose representation and understand agreements. It also informs consumers about their right to be informed about the transaction’s progress and any material facts that could affect their decision. |
Acknowledgment | Requires a signature or initials to confirm the document was presented and explained. This section serves as a record that the consumer has been educated on their rights and the agent’s obligations, promoting transparency and accountability. |
Understanding these sections is crucial for real estate agents to explain them clearly and confidently to consumers.
Common missteps when presenting the consumer guide in real estate
While the consumer guide is typically seen as a standard formality, approaching it as just another piece of paperwork can lead to missed opportunities or compliance issues.
To maximize its benefits, real estate professionals must avoid common pitfalls when presenting the guide to buyers and sellers. Instead, take a few minutes to review the important points and encourage the client to ask any questions.
Waiting until after personal information has been shared or contracts have been discussed can create legal and ethical concerns. In most states, you must tell the client about the guide right away, during your first conversation with the client.
Failing to address client questions or hesitating to clarify complex topics such as dual agency or fiduciary duties in a real estate transaction can damage trust. Be prepared with clear and unbiased responses that demonstrate your professionalism as a real estate agent.
When used properly, the guide becomes more than just a form – it establishes the foundation for an open and honest working relationship.
Note: Although real estate complaints weren’t among the top 10 consumer issues in 2024, the Consumer Federation of America noted that home-related concerns, like disputes with homeowners associations, still received an honorable mention – suggesting that being clear and giving early advice can help prevent problems from getting worse.
Turning compliance into a competitive advantage
The consumer guide is a sales asset when it comes to real estate. Top agents use it to establish authority, demonstrate professionalism and differentiate themselves early in the sales cycle.
Explaining the guide clearly and confidently shows that you’re a trusted advisor, creating a clear and honest relationship. It also sets clear expectations from the start and lowers the chance of problems later on.
The guide adds value by helping build a better connection, speeding up the sales process and increasing the likelihood of repeat and referral business.
Crucial steps for working effectively with real estate attorney
Engage early: Hire your attorney before signing any major documents, including the initial purchase agreement or offer, to ensure protective clauses are included.
Provide all documentation: Submit all relevant paperwork (offers, disclosures, inspection reports, title commitments) promptly and completely.
Understand role: Recognize that their primary function is to protect your legal interests and mitigate risk, not to negotiate price (unless specifically agreed upon).
Communicate clearly: Prepare a list of specific questions regarding contract contingencies, closing costs or title concerns before meetings or calls.
Trust the process: Follow their instructions regarding deadlines, escrow deposits and document review, as they are guiding the transaction through legal requirements.
How Pipedrive helps with agency compliance
To establish trust and safeguard your real estate business, it is crucial to disclose agency information.
Pipedrive offers a solution for agents and teams to handle these obligations effectively, incorporating compliance into their daily sales procedures with organization and transparency.
Utilizing a workflow based on a pipeline management system allows agents to monitor the progress of each lead, including when the consumer guide has been shared and acknowledged.
Using custom fields allows for simple recording of agency types, identifying dual representations and indicating when follow-up is required for disclosures.
Pipedrive offers a secure structure for ensuring compliance. It allows agents to document all communication and keep a detailed log of interactions, which is crucial for being prepared for audits and minimizing risks. The inclusion of reminders ensures that important tasks are not overlooked, even in situations with a large volume of activity or rapid progress.
Features like scheduling activities and tracking goals help make sales reports more accurate for deals. When every step is recorded in one place, agents can easily show they follow the rules, spot missing steps and spend more time building client relationships rather than handling paperwork.
Final thoughts
The consumer guide serves a greater purpose than being a set of documents. It is a strategic instrument that helps establish the foundation of the client relationship. When properly utilized, it fosters trust, minimizes risk and strengthens a professional’s reputation.
Salespeople who are clear and follow rules don’t just close deals, they earn lasting loyalty. In a market where trust and speed matter, that becomes a true competitive advantage.
