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.

What is Agency?

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:

Reasonable Care and Diligence

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.

Traditional (Seller's) Agency

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

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.

Buyer Brokerage Services Traditional (Seller) Brokerage Services
1. Buyer's Needs Paramount. The representing broker can devote full attention and undivided loyalty to the buyer-client's needs (timing, motivation, financing, etc.) without any obligation to a potential seller. 1. Seller's needs paramount. The broker's legal obligation is of undivided loyalty to the seller, despite the fact that  he or she is working "with" buyer..
2. Buyer can talk freely. A brokerage company's duty of confidentiality enables a buyer-client to to provide information without fear of harming their negotiating position. 2. Tell the seller all you learn. Broker has an obligation of full-disclosure to the seller-client to tell all info learned about the buyer that might enhance the seller's negotiating position.
3. First opportunity to view new listings. Because of the duty of undivided loyalty to the buyer-client, they are notified of new listings and given preference in scheduling opportunity to view these properties before buyer-customers are notified. 3. Lower level of responsibility to buyer-customers results in notifying buyer-customers of new listings and giving scheduling opportunity after buyer-clients
4. Legal obligation of diligence enables and binds broker to devote all the time and effort needed to serve buyer-client's needs. 4. Relationship of buyer-customer and broker less defined than that of buyer-client so efforts on behalf of buyer-customers take back seat to buyer-client.
Viewing Properties
1. OK to give facts accompanied by advice. 1. Just the facts. Broker obligated to provide material facts about property, but legally prohibited from addressing any negative aspects of the property that are not material facts.
2. Educate the buyer. Buyer's representative will assist buyer-client in making an objective comparison of competing properties. 2. Protect the seller. Salesperson legally prohibited from assisting buyer-customer in comparing competing properties.
1. Able to educate and assist buyer-client, if needed in negotiating strategy. Perform a market analysis on property. 1. Material facts only. Legal obligation to seller prohibits broker from assisting buyer customer with strategy. Can provide buyer-customer with printouts, but no analysis.
2. Contract. Attempt to protect buyer-client 2. Contract. Attempt to protect seller.
3. Disclose information to buyer-client regarding the property or seller which may stengthen negotiating position 3. Disclose information to seller regarding buyer which may strengthen negotiating position.
Follow through
1. Solve problems and manage details on buyer-client's behalf 1. Solve problems to seller's satisfaction.

Dual Agency

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.