Oklahoma Homebuying 101, Representation

How are you being represented?  As you focus on the search for a new Edmond home and mortgage this is a question many don't even consider.  You're worrying about yard sizes and interest rates, right?  You know what?  How you are represented in the real estate transaction is VERY important. 

In the state of Oklahoma, there are two ways you can be represented in a real estate transaction; by a Single Party Broker relationship or a Transaction Broker relationship.  There's a pretty big difference in the two.  I like to say that being represented as a single party is like having a coach on your side and the being represented as a transaction broker is like having a referee keeping the players in line.

 A Single Party Broker (your coach) will

1. Perform the terms of the brokerage agreement
2. Treat all parties to the transaction with honesty and exercise reasonable skill and care
3. Be available to receive all written offer and counteroffers, reduce all offers or counteroffers to a written form upon request of any party to a transaction and present timely such written offers and counteroffers
4. When an offer is made, inform in writing the party for whom the Broker is providing services that such party will be expected to pay certain closing costs, brokerage service costs, and the approximate amount of these costs
5. Keep the party for whom the Broker is providing services informed regarding the transaction
6. Timely account for all money and property received by the Broker
7. Keep confidential information received from a party confidential
8. Perform all brokerage activities for the benefit of the party for whom the single party broker is performing services unless prohibited by law
9. Disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act
10. Obey the specific directions of the party for whom the single party broker is performing services that are not contrary to applicable statutes and rules or contrary to the terms of a contract between the parties to the transaction
11. Inform the party for whom the Broker is performing services that the party may be vicariously liable for the acts and omissions of the Broker
12. Comply with all requirements of the Oklahoma Real Estate Code and all applicable statutes and rules.

A Transaction Broker (a referee) does all of the above EXCEPT

1. Performing all brokerage activities for the benefit of the party for whom the Broker is performing services
2. Obeying the specific directions of the party for whom the Broker is performing services that are not contrary to law or the contract between parties
3. Keeping the party for whom the Broker is performing services informed regarding the transaction.  A Transaction Broker does not provide services for the benefit of a party, but assists in the transaction.  In addition, the party for whom a transaction broker is performing services is not vicariously liable for the acts or omissions of the Broker.

That's a lot of information to take in.  I know.  Here's what I want you to take away.  A Single Party Broker is working to the benefit of the party (you, the buyer) in the transaction.  They are going to follow your direction, unless your direction breaks the law.  They are going to keep you informed throughout the transaction.  In my opinion, that's my job in a nutshell.  So, I choose to represent all my clients in this manner.

When you are buying a house, you need someone you can trust and rely on in your corner.  That's where I come in.

*Single Party Broker and Transaction Broker descriptions have been taken from the Oklahoma Real Estate Commission Single Party Broker Disclosure (11-2009)