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How does agency work in your neck of the woods???

By Jim Lee, REALTOR, CRS, ABR

Real Estate Agent with RE/MAX Shoreline New Hampshire & Maine

July 29, 2006 06:56 AM

I'm always curious about how real estate works in other parts of the country.

For example in Tennessee in order to become someone's "Agent" you have to have a bi-lateral agency agreement signed by both a consumer and a real estate licensee to become an official "Agent".

This is pretty automatic with our Board's listing agreements.

But with a buyer you also need a buyer agency agreement that appoints you to be their agent of choice.

The good part about having a written buyer agency agreement is that it's just like listing the buyer; if they buy a house, listed, FSBO, foreclosure, whatever, you get paid because of your buyer agency agreement.

Other Realtors are also required by our Code of Ethics to ask if a buyer (or seller) is subject to a current agency agreement

http://www.realtor.org/mempolweb.nsf/pages/code

"Code of Ethics and Standards of Practice
of the NATIONAL ASSOCIATION OF REALTORS ^®

Effective January 1, 2006

Article 16
REALTORS^® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS^® have with clients."

My Tennessee real estate license calls me an "Affiliate Broker", nowhere on that license does the word "agent" appear.

How does it work where you are???

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Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Hi Jim,

In Florida we have 3 choices. 1. You can be a "Single Agent" for either Seller or Buyer but not both. Single Agent is a fiduciary relationship. 2. You can be a "Transaction Broker" for either Seller or Buyer OR both. Transaction Broker is a limited form of representation. You can represent both parties this way but not to the detriment of either party. 3. Or you can have a "No Brokerage Relationship" with either both parties or separately. In Florida we are pressumed to be "Transaction Brokers" unless we disclose differently. Here is a link to our Law.

Jul 29, 2006 08:40 AM

Jim Lee, REALTOR, CRS, ABR

RE/MAX Shoreline - Portsmouth, NH

Buying or Selling? Ann & Jim are the local experts

Thanks Bryant,

In Tennessee the default position is "facilitator" or non-agent status.

If a buyer or seller hire to you be their agent the agency choices are: agent (which includes all the agents in your company, sort of like the old sub-agency relationships we used to have) or designated agent. A designated agent is one designated by the broker to the exclusion of all the other agents in that company.

One agent in the company can be the designated agent of the seller and another a designated agent of the buyer with no dual agency created.

Here's a link to the Tennessee law if anyone is interested.

http://www.kaarmls.com/agencylaw.htm

Jul 29, 2006 11:49 AM

I guess from your post that duel agency is illegal in Tn as it is in Florida. We can have designated agents but only on a commercial transaction where buyer and seller have assets of over 1 mil.

Jul 29, 2006 12:01 PM

I don't believe dual agency is illegal in Tennessee but, like any other agency form, it must be disclosed to a consumer.

I've never done any dual agency transaction because I've never been able to reconcile the inherent conflict of interest I see there.

Jul 29, 2006 07:15 PM

How does agency work in your neck of the woods???

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Jim Lee, REALTOR, CRS, ABR

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