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 What is agency? Why is agency
important?
Agency
It is important that you know the differences between a professional who
represents a seller (the "traditional" role of a sales associate), a
professional who represents a buyer and one who represents both. In most
areas, real estate professionals are now legally obliged to disclose, in
writing, information on the various types of real estate agency
relationships that exist. You should assume the real estate professional is
working for the seller unless otherwise stated.
Buyer's Agent - represents the
buyer during the home buying process. The buyer's real estate professional
(agent) has a fiduciary responsibility to represent the buyer's best
interests including reasonable care, loyalty and confidentiality.
Seller's Agent - represents the
interest of the seller and has a fiduciary responsibility of reasonable
care, loyalty, confidentiality and disclosure to the seller. A seller's real
estate professional (agent) works to assist the seller in locating a buyer
and in negotiating a transaction suitable to the seller's specific needs.
Dual Agent - represents the
interests of both the buyer and the seller, during the same transaction. A
dual agent has responsibilities to both buyer and seller and must act in the
best interest of both parties.
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Buyer's Agent |
Seller's Agent |
Dual Agent |
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Who an
agent represents in a transaction |
buyer |
seller |
buyer and seller |
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Who pays
agent's commission or fee |
seller (in most cases) or
buyer |
seller |
seller |
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Agent's
typical responsibilities |
Select and show suitable
properties; present offer; negotiate terms on behalf of buyer; assist
with escrow requirements |
Market home under terms of
listing contract; negotiate terms on behalf of seller; assist with
escrow requirements |
Market home for seller;
qualify and show home to potential buyers; negotiate terms on behalf of
buyer and seller; assist with escrow requirements |
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