 |
 |
 |
 |
< BACK
2050 Roswell Rd.
Marietta, GA 30062
Direct 678.784.4331
FAX 678.301.3606
E-Mail Us
 |
 |
 |
 |
 |
|
|
|
|
|
|
You and Your Broker:
Finding A Relationship That Works
by JANET & STUART BRENNER
There Are Several Different Types of Agency
Relationships Between Brokers and Clients, Learn Which Type
Will Work Best For You.
John and Sue Smith encountered what must have felt like a real
estate twilight zone when purchasing their first home. They
trusted their real estate agent to represent their best interests
when dealing with home sellers. They told him how much they
were willing to spend. The tables turned when they learned their
agent had disclosed this information to a potential seller.
They found out their agent was by law a representative of the
seller, not the buyer, and that this type of information was
not considered confidential.
Today, the ethical gray areas in relationships between agents,
buyers and sellers have been regulated and clearly defined by
a three-year-old agency disclosure law. This allows consumers
to accurately assess the role of their real estate agent so
that they can choose the best relationship for their particular
needs.
How does the law accomplish this? It requires the real estate
agent to disclose to the buyer the types of agency relationships
his broker offers and whether or not the broker has any pre-existing
relationships that may be in conflict with the prospective client.
The law sheds light on the variety of relationships a buyer
or seller can have with his agent. It clarifies the role your
broker has in buying and selling your home, while giving you
the power to choose the relationship that works best for you.
Types of Relationships
There are four basic types of broker-client relationships. The
"Seller Broker Relationship" is a situation in which
the seller is a client of the agent. The agent represents the
seller in all transactions.
The "Transaction Broker" is a situation in which the
agent has not executed an engagement with either party and therefore
has no clients in the transaction. This is the least utilized
relationship.
The "Dual Agency Relationship" is a situation where
the buyer and the seller are represented by the same broker.
The agent serves as a conduit --- only transmitting authorized
information between parties. In other words, the agent only
relays information that his clients approve.
The "Buyer Broker Relationship" is a situation in
which the buyer is a client of the agent. Since this relationship
is the most advantageous for the buyer, let's take a closer
look at how it works.
Buyer Brokerage
In this relationship, the agent represents the interest of the
buyer only, and this is understood by seller, buyer, and agent.
The duty of the "Buyer Brokerage" agent is to promote
the best interest of the buyer. For example, if John and Sue
Smith had worked with a buyers broker, the issue of confidentiality
would not have occurred. If you enter a 'Buyer Brokerage' agreement,
your real estate agent must keep information you discuss with
him confidential if you instruct him to do so. This insures
that information that could affect the price of the home you
are trying to buy is not disclosed without your permission.
In fact, the only way information can be released is when you
permit the disclosure, where the law requires, or where the
information had become public knowledge from a source other
than the agent. This arrangement allows your agent to truly
be an advocate for your best interest.
But does it cost you more money to work with a buyers agent?
The answer is no. It is common practice for the seller to pay
the real estate commission associated with the sale of a property,
and the buyer broker is often paid from these funds. Due to
this practice, the buyer does not incur any out-of-pocket expenses
by employing a buyers broker. The fact is that an agent's duty
of loyalty has never been determined solely by who paid the
commission associated with the purchase and sale of realty,
even though agents and consumers alike have often assumed that
it did.
With this knowledge, John and Sue Smith can purchase their next
home with a firm understanding of how a real estate agent can
work for them. They can choose the type of relationship they
want without fear of being surprised during the process.
As you can see, if you are a potential buyer, there are many
advantages open to you today. Not only can you knowledgeably
discuss what your broker should be able to do for you, you can
choose the type of relationship you want to have with your real
estate agent. As you move to a more empowering role as a home
buyer, the experience will prepare you for the challenges and
advantages you will inevitably encounter as a home seller. Most
importantly, you are at a great liberty to find out what is
in your best interest when dealing with individual brokers and
their agents--truly an advancement in consumer rights in the
area of real estate.
|
|
|
|
|
|
|
|
|
|
|
|
We offer some of the best Home Search Tools available on the Internet including our current resale inventory, new homes, and the ability to search the entire Atlanta Metro Area home inventory. Not just RE/MAX Greater Atlanta -- but every home on the Multiple Listing Service -- an average of 35,000 homes available at any time.
|
|
|
|
|
|
