Real estate agency rules differ from state to state, but the concepts are often universal: agents must “opt” a type of agency before beginning to operate for a specific client, and their client must specifically announce and accept the option. In Michigan, the state in which my business resides, a Realtor is legally forced to make each buyer sign something called “Disclosure Of Real Estate Agent Relationships,” a agreement stating the existence of the Realtor’s agency partnership with their client. Have a look at 4 real estate selling tips first timers for more info on this.
Here’s a rundown of the numerous forms of real estate agent partnerships that exist:
The Director of Sellers
An representative for a vendor works exclusively on the seller’s behalf. Seller’s representatives have a fiduciary duty to divulge specific customer details to the vendor that may be exploited to the seller’s gain. The duties which an employee of a seller owes to the seller include:
O Supporting a seller’s self interest
O Clearly reveal to the seller all information which may impact or influence the seller’s decision to accept a purchase offer
O Holding the seller’s reasons for sale secret
O Have all offers presented to the seller
O To reveal the names of all purchasers and any details about the ability of such purchasers to complete the deal or accept a better price
A buyer’s representative works on purchaser’s behalf alone. Consumer’s representatives have a fiduciary duty to divulge certain details regarding the vendor to the consumer that may be exploited to help the buyer. The obligations the consumer is owed by a buyer’s representative include:
O Support buyer’s best interests
O Clearly reveal to the purchaser all details which may impact or influence the purchaser ‘s decision to tender a purchase offer
O Hold purchaser’s reasons for purchasing secret
O Have all deals offered on behalf of the customer
O To reveal to the customer some details about the seller ‘s ability to conclude the deal or consider a lower price
Dual Agent Exposed
A real estate licensee can be the seller’s and buyer ‘s representative in a deal, but only with the information and clear written approval of both the seller and the buyer. Under such a case with dual agent the operator would not be required to reveal all identified details to either the seller or the purchaser. As a dual agent, the contractor may not be in a role to supply the seller or consumer with the maximum spectrum of fiduciary duties.
Coordinator of Sales
A transaction coordinator is a dealer that does not serve as either the seller’s or buyer’s representative, but offers services to execute a real estate sale. The planner of the deal is not an attorney for either side and therefore owes no fiduciary responsibility to either side. The transactional organiser is not one party’s representative and therefore has no duty to bargain with any side. Transaction co-ordinator ‘s duties usually include:
O Having links to the property and its view
O Offering consumer knowledge access;
O Offering assistance in the drafting of an arrangement to purchase and sell that represents the conditions of the agreement between the parties
O Apply a purchasing and selling deal and any counter-offers following
O Supporting both stakeholders in taking the required measures to meet the Arrangement, such as the execution of agreements, securing funds, receiving inspections etc.