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Home Buyer
Representation
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.
| Sellers
Agent: |
An agent who lists a property and
represents and acts on behalf of the seller. |
| Buyers
Agent: |
An agent who represents a buyer
and acts on the side of the buyer. |
| 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. |