In the past real estate agents primarily represented the seller. With the ever-increasing complexity of the real estate market, many buyers and sellers are opting for specialized services without
compromising their personal goals. Your Agent's Fiduciary Duties
When acting on your behalf, your agent is bound by law to:
- Be loyal at all times and act in your best interests;
- Obey and fulfill all your lawful instructions;
- Safeguard your confidences (i.e. urgency to buy or sell);
- Exercise reasonable care and diligence in answering any questions about your purchase or sale;
- Be accountable for handling all paperwork and funds promptly and presenting offers in a timely manner;
- Execute other duties as specifically outlined in the listing contract or buyer's agency contract.
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Fact: 50% of home buyers first learn about their new home from real estate professionals. |
Seller's Agency (Selling a Home)
When you first list your home for sale, you employ the real estate company through your agent as a seller's representative. An agent can
provide valuable services to a buyer, however all agents and subagents involved in the transaction work on behalf of, and in the best interest of, the seller, This was the most traditional arrangement in real estate
brokerage.
Seller Contract Requirements
- Work to be performed
- Duration of contract
- Condition of fees
Buyer's Agency (Buying a home)
This agency relationship exists when the agent represents the buyer exclusively in
the real estate transaction. The agent works on behalf of, and in the best interest of, the buyer. This concept may seem new, yet it has been in existence for many years. Buyer Contract Requirements
- Duties to both parties
- Duration of contract
- Fees (what condition fees will be earned, who pays and when)
- Other duties as specifically outlined in the listing contract or buyer's agency contract
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Fact: 71% of home sellers would use the same real estate agent again. |
Disclosed Dual Agency
An agency relationship in which the broker represents both the buyer and the seller. This includes an in-house sale, when both the buyer
and the seller have contracted with the same company, even if they are using two different salespeople. All parties must agree prior to any negotiation or acceptance
of a purchase agreement and the agent is required to meet strict ``informed" disclosure requirements in most states. The agent or agents must be impartial to
both parties and cannot disclose any confidential information to either the seller or the buyer. The specific duties owed to the buyer and the seller depend upon the
contract that is arranged, and the laws of the state. However, some contract requirements may be:
- Disclosure of any material defects in the property
- Fair treatment of each party
- Disclosure of the qualifications of the buyer to buy and the seller to sell
- Assistance in property inspections
- Diligence in facilitating the sale of property after the purchase agreement or sales contract has been accepted.
Remember: Always read all contracts or disclosure forms before
signing
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