What is real estate agency? Understand before you sign

Google+ Pinterest LinkedIn Tumblr +

What exactly is Real Estate Agency you ask? It is the relationship between the seller, and or the buyer, and the Realtor. There has been some confusion through the years regarding who works for whom. The buyers typically thought that when they went out with a Realtor, that the Realtor represented them instead of the sellers. With the confusion and sometimes-rare incidents of lack of disclosure, the legislature and the real estate industry decided to enact what they call “Agency /Brokerage Law.”

What this means is that there is a consumer notice/non-representation form and this depends on what state you are in, but they work in the same manner. This form is provided, to the buyers and or seller at first meeting, and then explained to them the different between brokerage/agency disclosures ,and requirements that apply to the real estate transaction. This consumer notice/ non-representation form is signed and dated by both buyer, or seller and Realtor. When the buyer does establish an agency relationship, then a contract will be dated and sign indicating such a relationship between the realtor and buyer. The seller when listing his home will sign one as well.

Buyers and sellers have a choice in the real estate transaction involving the type of representation they want.

1-Transaction broker- Can be for the buyer or seller The Broker/Realtor will provide limited representation to a buyer or seller in the transaction. What they will do is:

Be honest and fair

Use diligence in the transaction – aid in anything that may affect the value of the property.

Account for all funds, – that means money being held in escrow

Disclose all known facts about the property- material facts

Present all offers in a timely manner

Limited confidentiality

2-Single Agent-Buyer or seller can be represented but not both in the same transaction. They will

Be honest and fair

Loyal

Account for all funds

Acting on the clients behalf

Confidentiality

Will use diligence in the transaction

Present all offers in a timely manner

Buyer Agency- the Realtor works for you and does everything a single agent does, except show his or her own listings. Buyer agency has grown in popularity. Some agents have gone to school and taken courses to receive there ABR-Accredited Buyer Representive pin.

The buyer agent looks out for your interests

Provides loyalty,

Confidentiality

Is honest and fair

Account for all funds

Also presents all offers in a timely manner.

You are starting to see more Buyer Brokerages opening up. They do not list houses only deal with buyers.

Dual agency- has been done away with, that was where the Realtor represented both parties in the same transaction. There is one or two other agency relationships but these are the most common.

Share.

About Author

Leave A Reply