Working
With Real Estate Brokers
-Continued-
Unwritten Agreements:
To make sure that you and the
real estate firm have a clear understanding of what your
relationship will be and what the firm will do for you, you may
want to have a written agreement. However, some firms may be
willing to represent and assist you for a time as a buyer's
broker without a written agreement. But if you decide to make an
offer to purchase a particular property, the broker must obtain
a written agency agreement. If you do not sign it, the
broker
can no longer represent and assist you and is no longer required
to keep information about you confidential. Furthermore, if you
later purchase the property through an broker with another firm,
the broker who first showed you the property may seek
compensation from the other firm.
Be sure to read and understand
any agency agreement before you sign it.
Services and Compensation:
Whether you have a written or
unwritten agreement, a buyer's broker will perform a number of
services for you. These may include helping you;
If you have a written
agency agreement, the broker can also help you prepare and
submit a written offer to the seller.
A buyer's broker can be
compensated in different ways. For example, you can pay the
broker out of your own pocket. Or the broker may seek
compensation from the seller or listing broker first, but
require you to pay if the listing broker refuses. Whatever the
case, be sure your compensation arrangement with your buyer's
broker is spelled out in a buyer agency agreement before you
make an offer to purchase property and that you carefully read
and understand the compensation provision.
Dual Agent:
You may permit an broker or firm to represent you and the
seller at the same time. This "dual agency relationship" is most
likely to happen if you become interested in a property listed
with your buyer's broker or the broker's firm. If this occurs
and you have not already agreed to a dual agency relationship in
your (written or oral) buyer agency agreement, your buyer's
broker will ask you to sign a separate agreement or document
permitting him or her to act as broker for both you and the
seller. It may be difficult for a dual broker to advance the
interests of both the buyer and seller. Nevertheless, a dual
broker must treat buyers and sellers fairly and equally. Although the dual
broker owes them the same duties, buyers and
sellers can prohibit dual brokers from divulging certain
confidential information about them to the other party.
Some firms also offer a form
of dual agency called "designated agency" where one
broker in
the firm represents the seller and another broker represents the
buyer. This option (when available) may allow each "designated
broker" to more fully represent each party.
If you choose the "dual
agency" option, remember that since a dual agent's
loyalty is divided between parties with competing interests, it
is especially important that you have a clear understanding of;
This can best be accomplished
by putting the agreement in writing at the earliest possible
time.
Seller's broker Working With
a Buyer
If the real estate broker or
firm that you contact does not offer buyer agency or you
do not want them to act as your buyer broker, you can
still work with the firm and its brokers. However, they will be
acting as the seller's broker (or "subagent"). The
broker can still help you find and purchase property and provide
many of the same services as a buyer's broker. The broker
must be fair with you and provide you with any "material facts"
(such as a leaky roof) about properties.
But remember, the broker
represents the seller—not you— and therefore must try to obtain
for the seller the best possible price and terms for the
seller's property. Furthermore, a seller's broker is
required to give the seller any information about you (even
personal, financial or confidential information) that would help
the seller in the sale of his or her property. brokers must tell
you in writing if they are sellers' brokers before
you say anything that can help the seller. But
until you are sure that an broker is not a
seller's broker, you should avoid saying anything you do not
want a seller to know.
Sellers' brokers are
compensated by the sellers.
Call our
office if you would like to discuss any of the topics
contained in this Agency information. 919.851.6122
