| What To Expect From A Realtor |
Buying a Home
REALTORS are governed by the legal concept of "agency". An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person.
A REALTOR may be your agent - if you have clearly established an agency relationship with that REALTOR. But often, you may assume such an obligation exists when it does not.
REALTORS believe it is important that the people they work with understand when an agency relationship exists and when it does not - and to understand what it means.
In real estate, There are three different forms of agency relationship:
1. Seller's Agent
When a real estate company is a "seller's agent", it must do what is best for the seller of a property.
A seller's agent must tell the seller anything about a buyer. For instance, if a seller's agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller's agent must be kept confidential.
A buyer can expect fair service and disclosure of pertinent information about a property. Nothing will be misrepresented about a property. All questions will be answered honestly.
2. Buyer's Agent
A real estate company acting as a "buyer's agent" must do what is best for the buyer.
A written contract establishes buyer agency. It also explains services the REALTOR will provide, spells out who will pay and specifies what obligations a purchaser may have. Typically, buyers will be obliged to work exclusively with that REALTOR for a period of time.
A REALTOR working for a buyer will keep information about the buyer confidential from the seller.
3. Dual Agency
Occasionally a real estate company will be the agent of both the buyer and the seller. Under this "dual agency" arrangement, the REALTOR must do what is best for both the seller and the buyer.
Your real estate agent will discuss dual agency during conversations dealing with representation and provision of service.
A REALTOR can be a dual agent only if both the buyer and seller agree in writing.
Who Pays?
Usually, the REALTOR will be paid from the proceeds of the sale. The listing agreement states the Realtor's fee.
When more than one REALTOR is involved
Often, a buyer will work with one REALTOR and a seller will work with another. It may appear that the REALTOR working with the buyer is working for that buyer, in an agency relationship. That is not necessarily the case.
The REALTOR working with a buyer may be a "sub-agent of the seller. In this case, the REALTOR is actually a seller's agent. While a seller's agent can provide many valuable services to a buyer, he or she must do what is best for the seller.
If a written contract exists with a buyer, a REALTOR can be a buyer's agent.
Buyer's and seller's will always be told - in writing - who a REALTOR is working for.
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