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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.
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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. |
