The California Agency Disclosure: buyers and sellers need to read and understand this disclosure form.
When an agent represents the buyer exclusively and vice versa, when an agent represents the seller exclusively, there are few questions and concerns about whose side the agents are on. Now when it comes to a dual agency situation it gets a bit more complicated.
In the State of California an agent can represent both parties in a transaction. The key is it must be done with “the knowledge and consent” of both parties i.e.: the buyers and the sellers.
This is known as a “dual agency situation”. Here the agent has the obligation to both the Seller and the Buyer at the minimum to:
(1) a fiduciary duty of the utmost care, integrity, honesty and loyalty in the dealings with either the seller or the buyer.
(2) In this situation the agent may not, without the express permission of the respective party, disclose to the other party, that the Seller will accept a price less than the listing price or that the Buyer will pay a price that is higher than the list price or the offered price.
Let’s be realistic, the buyer’s motivation to use the listing agent, generally consists of two primary reasons:
One of which happens to be, that they want to be assured aka a guaranteed, that they will get the property. Hence, they are trying to give incentives to the listing agent to make sure they get their offer accepted. Since being on both sides of the transaction translates to a full commission they believe that will assure them the property.
The second reason, often buyers mistakenly believe, that they will get “a better deal” i.e.: for less money than if they would have used another agent. Again, they believe that with the same incentives as above they can achieve their desired goal.
Now let’s be clear in California there are about 150,000 Realtors who abide by an ethics code, that the California Bureau of Real Estate has started to adopt. Then to boot the other 250,000+ Real Estate Practitioners might not have a Code of Ethics, never the less they fall under the California Civil Code which requires them to abide by their Fiduciary Responsibilities to the Sellers and or to the Buyers.
Hence the likelihood that Real Estate Practitioner or that Realtor will jeopardize his or her license and potentially acquire fines on top is very unlikely. Yes, there might be a few bad apples out there in any profession, but it is a safe bet that they are a minority.
When I represent buyers or sellers I make sure that I can stand in front of a Judge and say “…well the reason I did or did not do something is…” Hence I feel confident that my ethics, morals and fiduciary responsibilities are met and not only met but carried out 100% to my client’s benefit.
In conclusion, more importantly than just to read the California Agency Disclosures, buyers and sellers need to get a good feeling about who will represent them in their purchase or sale of their properties. In short someone who has a high bar when it comes to ethics and morals.
If you are looking for a greater Los Angeles Realtor who will focus 100% on your wants and needs, please reach out to me directly.
If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com. I contribute a portion of my commission to local animal rescue organizations.
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