There have been many times that I catch myself explaining the difference of a buyer’s agent and a seller’s agent to my clients. In traditional real estate times there was only a seller’s agent and the buyer’s did not have the same equal treatment. Well there is a difference, a big difference and here it is….
A buyer’s agent is an agent who is engaged by a buyer to represent the buyer’s interests. The buyer’s agent does this by negotiating the purchase of a home at a price and on terms acceptable to the buyer. A buyer’s agent has, without limitation, the following fiduciary duties to the buyer: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A buyer’s agent does not represent the interest of the seller. The ob-ligations of a buyer’s agent are also subject to any specific provisions set forth in an agreement between the agent and the buyer. In dealings with the seller, a buyer’s agent should (a) exercise reasonable skill and care in performance of the agent’s duties (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the buyer’s ability and/or willingness to perform a contract to acquire seller’s property that are not inconsistent with the agent’s fiduciary duties to the buyer.
A seller’s agent is an agent who is engaged by a seller to represent the seller’s interests. The seller’s agent does this by securing a buyer for the seller’s home at a price and on terms acceptable to the seller. A seller’s agent has, with-out limitation, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A seller’s agent does not represent the interests of the buyer. The obligations of a seller’s agent are also subject to any specific provisions set forth in an agreement between the agent and the seller. In dealings with the buyer, a seller’s agent should (a) exercise reasonable skill and care in performance of the agent’s duties (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.
Especially, a buyer's agent works and represents a buyer and a seller's agent represents a seller. Therefore, both sides of the transaction are equally represented....more later.
R
thanks for the great info Robin. i'm working with a buyer's agent and she recently showed me a house where she is also the seller's agent. turns out it's the house i like the most, any thoughts on how to handle the situation?
ReplyDeleteEkrem,
ReplyDeleteI would say be very careful. Did you sign and exclusive contract with your buyer's agent? If so you are bound, however depending on which state you live in she should get written consent from both you and the seller stating that you both are aware of what’s called “dual agency”, meaning, one agent representing two different parties. If you are not comfortable with a dual agent and you definitely want to move forward with the home, you do have the right to ask her for someone else in her office to represent you on just this one house.
Thanks Ekrem! I hope this helps and good luck with your potential new home!!!!
R
hi Robin. i'm gonna take your advice and ask for another agent to represent me because i don't like the idea of dual agency. i don't think someone can effectively represent both sides of a transaction. thanks again and keep up the great work!
ReplyDelete