BUYER/SELLER AGENCY 101
Important! At your first meeting, prior to viewing properties, the broker who is working with you must provide you with, sign, and have you sign the "CONSUMER NOTICE. If that broker/agent does not do that, he or she is in violation of Pennsylvania law.
Agency is the relationship formed between consumer and a broker/agent who is hired to assist and represent him/her in a legal real estate transaction. The type of relationship formed between the broker and the client is called a fiduciary relationship. A fiduciary relationship is one that is based on trust because the broker owes the following duties to the client:
The client may either be a buyer or a seller. In real estate transactions, an agency relationship is formed between the real estate broker and the client. Agency duties are enforced so that the client can rely on the broker putting the client's interests before that of anyone else. The broker owes its allegiance to the client.
All agents represent the seller unless otherwise agreed to. Under this agreement, when a seller lists a property with a broker, that broker represents the interests of the seller, creating an agency agreement.
The agent represents the seller only, even if he/she is showing you the property directly. Price negotiations and information about the seller are confidential between the Seller and the Seller's Agent.
Where the broker you've been working with shows you another broker's listing, "your" broker is a sub-agent (cooperating broker) of the seller's agent. The same loyalty, trust, and obligations exist between the seller and "your" agent.
Buyer agency is designed to allow the Buyer an opportunity to have a broker represent him/her instead of representing the seller. Each side is equally represented. When a buyer is represented by the broker, all fiduciary responsibilities are owed by the broker to the buyer. The Buyer now has the freedom to discuss with the broker property value, negotiating strategies, and personal finances. The broker is also free to discuss condition of the property, the structure of the offer, seller's motivation, and other information he would not normally be able to provide.
This type of agency enables me to truly work for you, and I highly recommend it. Since all agencies cooperate with each other, In most cases you will not be asked to provide compensation. I offer this as a FREE service to my clients upon signing a Business Relationship Agreement Between Buyer and Broker.
This occurs when one brokerage has a fiduciary relationship with two clients; One wanting to buy, the other to sell.
When a dual agency is formed, we will notify and receive consent from each client. Our fiduciary relationship with our clients is based upon full disclosure and informed consent.
Dual agency limits the agency capacity of the broker who must only act as a facilitator or mediator.
Please contact me if you have any questions about Agency Relationship.