What you need to know about agency relationship when working with Real Estate Agent
Real estate agency relationships, like all business relationships, can be formed in a number of ways. Real estate agency relationships is established when someone who represents your best interests in a real estate transaction and owes you fiduciary responsibilities. Agency relationships are usually established in writing.
Seller’s Agent
Seller’s agent also known as a listing agent, a seller’s agent is hired by and represents the seller. The agency relationship usually is evidenced by a listing agreement. A seller’s agent negotiates the best possible price and terms for the seller. A seller’s agent has the fiduciary duties of loyalty, obedience, disclosure, confidentiality and accounting in dealing with the seller only. The agent represents the seller’s best interest throughout the transaction.
Buyer’s Agent
A real estate agent is hired by buyer to find an acceptable property for purchase and to negotiate the best possible price and terms for the buyer. The agency relationship is established by signing Buyer Broker Agreement. The agent represents the buyer’s best interest throughout the transaction. A buyer’s agent has the fiduciary duties of loyalty, obedience, disclosure, confidentiality and accounting in dealing with the buyer only.
Dual Agent
Dual agency is a relationship in which the brokerage represents both the buyer and the seller in the same real estate transaction. Dual agency relationships don’t carry with them all of the traditional fiduciary duties to the clients. Dual agents owe limited fiduciary duties. The fiduciary duty of loyalty to the client is limited. This focuses on confidentially and the negotiation process. For example, a dual agent cannot negotiate the highest, best price for seller and the lowest and most competitive price for buyer without written authorization. Because of the potential for conflicts of interest in a dual agency relationship, all parties to the dual agency relationship must give their informed consent.
Builder Home Sales Associate
Builder home sales associate inside model home works for the builder. Just like listing agent, builder home sales associate represent home builder and represents builder’s best interest throughout the transaction. You need to hire a Buyer Agent to represent you. So if you would like an experienced Buyer Agent to represent you should you decide to purchase new home, I will need to go with you on your first visit to the model house.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
New Listing in Last 24 hour Phoenix AZ
Search and view your dream home your way
Receive email alert as soon as a Phoenix property matching your criteria hits the market. Be one of the first to see new listings. Simply type in everything you want in a house and save your search here to be notified.
How Can We Help You?
