Historically speaking, REALTORS® were not required to work with buyers under a formal buyer agency agreement. Most states now require that all real estate agents disclose agency in the form of a Consumer Notice. A real estate agent can work with buyers in a variety of agency relationships, however most agents do not educate their clients about agency relationships.
4 Ways a License Holder Can Represent a Party in a Real Estate Transaction
AS AGENT FOR OWNER (SELLER/LANDLORD)
The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT
The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH – INTERMEDIARY
To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:
- Must treat all parties to the transaction impartially and fairly
- May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.
- Must not, unless specifically authorized in writing to do so by the party, disclose:
- that the owner will accept a price less than the written asking price
- that the buyer/tenant will pay a price greater than the price submitted in a written offer, and
- any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.
A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
Our Buyers Pledge
At Tami Price Properties, Inc. we work with our buyers strictly in a Buyer Agency Relationship. What does this mean to you? This means we are working strictly for you, our buyer, in your best interest!
We feel so strongly about it, we put it in writing. To provide unsurpassed service to help you buy your home at a fair market price, in the shortest time, with the least inconvenience to you, we pledge to:
- Explain real estate agency relationships.
- Maintain communication during the term of the agreement.
- Analyze your property needs and desires.
- Orient you to current market conditions.
- Provide helpful community data.
- Explain local real estate practices and procedures.
- Provide information on lenders and financing alternatives
- Search the local Multiple Listing Service for suitable properties.
- Coordinate appointments and show all properties of interest, whether the properties are our listings or not.
- Provide relevant market data as to fair market value of homes.
- Disclose all known material defects of the property.
- Explain the offer presentation process
- Carefully explain and prepare offer on designated promulgated forms
- Present all offers in a timely manner
- Deliver State required Property Disclosure form.
- Strive to obtain the best possible price and terms for you.
- Explain post-purchase activities and responsibilities.
- Follow up on all post-purchase activities.
- Keep confidential information confidential that you designate in writing.
Interested in learning more about Buyer Agency and how we can help you in the buying process? Contact us today!