by Carla Hill
Understanding agency relationships can be difficult for those new to the real estate process. What does dual agency mean? Who is your agent representing? Who is responsible for what?
These details are crucial in helping you understand what your agent is responsible for and what they must disclose. Let's look over some of the terminology.
First up is Dual Agency. This means that your brokerage firm or agency is representing both the buyer and the seller. And while there shouldn't be a conflict of interest, dual agency must be disclosed and you must agree to work within the situation for it to be legal. In fact, written consent is required in many states.
One solution to this potential conflict of interest is a Designated Agent. This arrangement helps clear up an trickiness that might arise from dual agency. A brokerage will designate one agent as the seller's agent and then another as the buyer's agent.
A Buyer's Representative, on the other had, works soley with the buyer. This means they have your best interest at heart during the entire process. They help you find a house, put in the offer, and close the deal.
A Seller's Representative, sometimes known as the listing agent, is hired by the seller. The seller generally enters into a contract with the agent, agreeing to allow only that agent to sell the home. A seller is responsible for paying a commission to their agent upon sale, and sometimes negotiations with buyers mean the seller pays the buyer's agent as well.
Finally, let's look at Subagents. This can be a little complicated to understand, but the basic sentiment is this: A subagent is an agent from another brokerage that is supplying you with a service, such as showing you a house. The subagent is obligated to give you honest service the same as your regular agent. But on the flip side of the coin, they are not allowed to assist you in any way that would negatively impact the seller.
The key to understanding your particular situation is to ask questions. Be sure to ask your agent what sort of agency relationship they have with you.
Published: March 25, 2011
These details are crucial in helping you understand what your agent is responsible for and what they must disclose. Let's look over some of the terminology.
First up is Dual Agency. This means that your brokerage firm or agency is representing both the buyer and the seller. And while there shouldn't be a conflict of interest, dual agency must be disclosed and you must agree to work within the situation for it to be legal. In fact, written consent is required in many states.
One solution to this potential conflict of interest is a Designated Agent. This arrangement helps clear up an trickiness that might arise from dual agency. A brokerage will designate one agent as the seller's agent and then another as the buyer's agent.
A Buyer's Representative, on the other had, works soley with the buyer. This means they have your best interest at heart during the entire process. They help you find a house, put in the offer, and close the deal.
A Seller's Representative, sometimes known as the listing agent, is hired by the seller. The seller generally enters into a contract with the agent, agreeing to allow only that agent to sell the home. A seller is responsible for paying a commission to their agent upon sale, and sometimes negotiations with buyers mean the seller pays the buyer's agent as well.
Finally, let's look at Subagents. This can be a little complicated to understand, but the basic sentiment is this: A subagent is an agent from another brokerage that is supplying you with a service, such as showing you a house. The subagent is obligated to give you honest service the same as your regular agent. But on the flip side of the coin, they are not allowed to assist you in any way that would negatively impact the seller.
The key to understanding your particular situation is to ask questions. Be sure to ask your agent what sort of agency relationship they have with you.
Published: March 25, 2011
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