Who’s Side Is Your Real Estate Agent On?

In contract negotiations, your real estate agent is legally bound to represent a buyer or seller. You should be aware of how your best interests are protected. You should first ask your realtor about their agency relationship with you and their brokerage company.

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– Buyers Representative (Buyers Agent, Buyers Broker) A licensed real estate agent hired by prospective buyers to represent them exclusively in the purchase or sale of real property. The licensee is responsible for protecting the buyer’s interests and will always represent them exclusively and negotiate the best terms and price. The seller of the property pays commissions, so this is almost always a free service for the buyer. A “Buyer-Broker Exclusive Employment Agreement” usually creates the agency relationship.

– Listing Agent, Sellers Agent A licensede that a potential seller hires to represent them exclusively in the sale or lease of real estate. The real estate licensee is responsible for the seller’s best interests and will always represent them. A Listing Contract creates this agency relationship.

Sub-Agency This type of agency was once common but is slowly being phased out. Subagents owe the same fiduciary duties to both buyer and seller. For all intents and Top Real Estate Agents In Sedona Az purposes, the sub-agent represents the buyer as a buyer client and not as a buyer customer. This is because the agent has a fiduciary obligation to the seller and listing broker. The agent cannot represent the buyer if the seller or the sellers broker would be hurt.

Disclosed Dual Agent– Two agents who work for ABC Realty would be an example. The seller is represented by one of the agents. The buyer is represented by the other agent. Dual agency is automatically created because both agents are licensed by the same Brokerage. One agent can represent both the seller and buyer. The agents have limited fiduciary responsibilities to buyers and sellers. This type of agency is legal in real property, but it can have severe legal consequences if not properly disclosed. All parties must consent to the transaction in writing.

– Appointed Agent (Designated Agent) This type of agency is only available in a few states. The Designated Broker (Managing Broker) for the company will “designate” or assign which licensee will be representing the buyer and which will represent the seller. This removes conflicts of interest in Disclosed Dual Agency. Although the client may have full representation from the Designated Agent, the broker must closely monitor and supervise the licensees.