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Agency Relationship in Real Estate Transaction
It's the
law…Agency
Every
listing agreement and buyer agency agreement for real
estate services contains a description of agent duties
and relationships.
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Sellers Agent: |
An
agent who lists a property and represents and acts
on behalf of the seller. |
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Buyers Agent: |
An
agent who represents a buyer and acts on the side
of the buyer. |
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Dual Agency: |
This
occurs when the agent is representing both the
buyer and the seller in a transaction, or when two
agents working for the same real estate company
each represent a party in the transaction. This
requires consent of all parties, and all
confidential information about price, terms and
motivation of any party involved are kept
confidential. Dual agents may not advocate for one
party to the detriment of the other.
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If a
buyer(s) decide not to agree to a dual agency, they
may give up their opportunity to purchase properties
listed by their real estate agents company. If a
seller decides not to agree to a dual agency
relationship, the seller may give up the opportunity
to sell the property to a buyer representative by
their real estate agency company.
How does buyer representation work?
In every real estate transaction there are two sides:
the seller and the buyer. As an agent, I always
represent someone's interests. That someone is the
party with whom I have a contract. Unless I have a
contract with you, the buyer, no matter how friendly
we become, my loyalty and fiduciary responsibilities
must be to the party with whom there is a contract -
the seller.
What happens if Your Company also Represents the
Seller?
This is known as a dual agent. I represent both
you and the seller. The discussions regarding price,
term of contract and the motivation of you and the
seller are confidential and do not get discussed with
the other party. As a dual agent I cannot work to the
detriment of either Party. Although this description
of dual agent is brief, feel free to contact me for
more complete details.
What are the Benefits to the Buyer?
With either type of agency, I am required to treat you
with honesty and fairness, to assist you in selecting
a property, and to disclose to you any known material
defects in the properties that I show you. As your
buyer agent, I can give you my loyalty, and there is
confidentiality. I am working in your interest. As
your agent, you can level with me. I am negotiating
and facilitating throughout the process of buying a
home.
What are the Disadvantages to the Buyer?
Arguably, there are no disadvantages, but there is a
contractual responsibility. As your representative, I
am working in your interest. But just as a seller has
a contract to sell through his or her agent, you as a
buyer client have a contractual responsibility to buy
your home through me during the time the contract
covers, even if you find a property on your own.
Is
it in the Seller's Interest to work with Buyer Agents?
Absolutely! Working with Buyer Agents provides the
home seller with the maximum exposure of their home,
highly motivated and qualified buyers, and no
liability for a sub-agent's actions or
misrepresentations to the buyer.
Will it Cost Me Extra to Have My Own Representation as
a Buyer?
NO! The seller pays my fee on all property listed
through the Multiple Listing Service (MLS). In the
case of a For Sale By Owner, many have already
included a fee for the Buyer's Broker because they
recognize the value of a professional Realtor showing
their home to potential buyers. |
