Types of Agency Relationships

• Sellers Agent

If you engage the services of a listing broker to sell your property, you become the broker's client. That broker represents you, the seller, and owes you undivided loyalty, confidentiality and accountability. In negotiating for the best price and terms, he must put your interests first.

If you engage the services of a real estate licensee to buy a property as a sellers agent you become a customer of the agent, not a client. The agent owes sellers the responsibilities listed above the same as a listing broker and must put the sellers interests first. The sellers agent owes the buyer customer the duty to deal with them fairly and honestly.

A repercussion of a seller working with buyers using sellers agents is that the agents are supposed to be working for the seller, but sometimes illegally (even if accidentally) wander into the realm of un disclosed dual agency. This happens if the seller agent working with the buyer doesn't live up to one of their responsibilities to the seller and helps the buyer in a way that isn't advantageous to the seller.

A buyer working with a sellers agent should never tell the sellers agent anything that the buyer would not want the seller to know. Anything the sellers agent hears that the seller should know must be told to the seller. Things such as the following, but not limited to, often can help the seller negotiate the buyers down: We need to move soon, We could afford much more, This is our "1st" offer, We "really" love the place. A sellers agent working with a buyer can not point out facts noticed or information garnered that will help negotiate or decide on a property. However, all agents must disclose pertinent facts known about any property (lead paint, water damage, pests, etc).


• Buyer's Agent

You may engage the services of a broker to represent you exclusively as a buyer of real property. In this case, the broker represents you and is accountable to you. She must obey your instructions and keep confidential anything you tell her that may affect your purchase of real property. In negotiating for the best prices and terms, she must put your interests first. A buyer may point out facts noticed or information garnered that will help negotiate or decide on a property.

• Disclosed Dual Agent

A broker can work for both the buyer and the seller on the same property provided the broker gets the consent of both parties and provides each with a written notice of the relationship. In this case, the broker is considered a "disclosed dual agent." This broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker does not represent either the seller or the buyer exclusively, and neither party can expect the broker's undivided loyalty. Undisclosed dual agency by a broker is illegal.