Agency Relationships

The real estate industry continues to adjust itself to meet the demands of consumer service. As a professional real estate agent, we offer several options to sellers and buyers to provide the best level of service. In the past, when you worked with an agent to find a home, the agent typically was "employed" by the seller. This meant that the agent had a legal responsibility to always act in the best interest of the seller. Now the buyer has the ability to "employ" an agent in a legal capacity to act in their best interest.

What is meant by the phrase "Agency Relationships?" It is the relationship resulting from mutual consent between you and your real estate agent. That the agent will act upon your behalf during the course of the real estate transaction. To begin this relationship, you will be asked to enter into a legal agreement.

What are the types of agency?

  1. Seller Agency: A seller's agent is a real estate agent, who represents only the seller's interests. Because the seller's agent lists and markets the home to sell, they are also referred to as the listing agent. The seller's agent has responsibilities, which include obtaining the highest possible purchase price and the best possible terms for the seller.
  2. Buyer Agency: A buyer's agent is a real estate agent, who represents only the buyer's interests.
  3. Sub-Agency: A sub-agent is a real estate agent, who may be contacted by a buyer to find a home for purchase. However, the sub-agent represents the seller and is responsible for getting the best possible price and terms for the seller.

    The sub-agent may provide such services as, home search, explanation of financing options, calculating monthly payments and estimating closing costs. They may NOT disclose confidential information that is not in the best interest of the seller, but may share with the seller information provided by the buyer. For example, if a buyer is willing to pay more than is offered or that the buyer will pay more closing costs.
  4. Dual Agency: Dual agency may be called several other names but the basics remain the same. Other names may include, in-company situation, transaction broker or facilitator. A premier agent will usually have many properties listed for sale, meaning they have entered into an agreement with the seller. When a buyer chooses to utilize this same agent's professional service, they, too, enter into an agreement. If the buyer decides to purchase a property that their agent has listed, it creates a dual agency capacity for that agent. In all cases, the agent must have the informed consent of both the seller and the buyer in order to perform this service. The agent is obligated to make certain that all material facts relating to the property's condition are disclosed; however, they must exercise care with negotiating information.