If you're currently working with a Realtor and they haven't taken the time to explain agency disclosure ... BEWARE! Don't go out looking at houses before your Realtor has explained it to you.
Realtors are required to explain the different types of relationships, whether they are acting as a sellers agent, buyers agent or dual agent. Here are the definitions of all 3:
- SELLERS AGENT: A seller's representative is hired by and represents the best interests of the seller. The relationship usually is created by a listing contract.
- BUYERS AGENT: This type of licensee is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyers' best interest throughout the transaction. The buyers can pay the licensee directly through a negotiated fee, or the buyers' rep may be paid by the seller or by a commission split with the listing broker.
- DUAL AGENT: Dual agency is a relationship in which the brokerage represents both the buyer and the seller in the same real estate transaction. Dual agents typically owe limited duties to each of the parties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent.
Basically, it boils down to this, if you're looking to buy a home, make sure you trust your Realtor and the relationship feels right. If it does, hire him or her by signing the buyers' agency. This will ensure that your Realtor is always looking out for your best interest. But, remember, it's OK to fire your Realtor if they're not getting the job done.
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Happy house hunting!
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