Working With Real Estate Agents Brochure
Agency Relationships Explained:
What type of agency relationship does your agent have with you?
Seller's Agent/Listing agent:
A seller's agent is hired by and represents the seller. ALL fiduciary duties are owed to the seller by their listing agent. All personal and private information regarding the transaction is protected by the seller's agent and is not released to the buyer or the buyer's agent. The agency relationship usually is created by a listing contract.
A buyer’s agent is hired by the prospective buyer to represent them in a real estate transaction. The buyer's agent works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. All personal and private information regarding the buyer's role in the transaction is protected by the buyer's agent and is not released to the seller or the seller's agent. The buyer can pay the licensee directly through a negotiated fee, or the buyer's agent may be paid by the seller or through a commission split with the seller’s agent.
Disclosed dual agent:
Dual agency is a relationship in which the brokerage firm/agent represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.
This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.
If you have a question on agency and what it means to you in your next real estate transaction, call me today! Now more than ever, it is important that everyone have representation when buying or selling real estate!