When entering a real estate transaction, it’s crucial to understand the type of agency relationship you have with your real estate licensee. This knowledge is essential for protecting your interests and ensuring transparency throughout the transaction process.

Types of agency relationships

Seller’s Agents

A seller’s agent, under a listing agreement with the seller, acts solely on behalf of the seller. This agent is responsible for marketing the property, presenting offers, and assisting in negotiations to achieve the best possible terms for the seller. Subagents may also work with the seller’s agent, maintaining the same loyalty to the seller.

Buyer’s Agents

A buyer’s agent, under a buyer’s agency agreement, acts solely on behalf of the buyer. This agent helps the buyer find suitable properties, presents offers, and negotiates terms favorable to the buyer. Similar to the seller’s agent, subagents can assist the buyer’s agent while maintaining loyalty to the buyer.

Dual Agents

A dual agent represents both the buyer and the seller in the same transaction. This relationship is only permitted with the informed, written consent of both parties. Dual agents have limited ability to fully represent either party due to potential conflicts of interest.

Transaction Coordinators

A transaction coordinator does not represent either party but provides services to facilitate the transaction. This role does not involve any fiduciary duties, meaning the coordinator does not advocate for either the buyer or the seller.

Designated Agency

In a designated agency relationship, the buyer or seller is represented only by agents specifically named in the agreement. Other agents in the same firm do not represent the buyer or seller and may represent other parties in the transaction.

Duties owed by real estate agents

Agents providing services under any service provision agreement owe their clients several key duties, including:

• Reasonable Care and Skill: Exercising competence and diligence in representing the client
• Loyalty: Acting in the best interest of the client
• Confidentiality: Keeping all information obtained during the agency relationship confidential unless permitted to disclose by the client or by law
• Compliance: Adhering to all applicable laws, rules, and regulations
• Accounting: Properly managing all money and property received on behalf of the client
• Referral to Experts: Advising clients to seek professional advice on matters outside the agent’s expertise

Services Provided by Agents

Real estate agents must provide specific services to their clients, such as:

• Marketing the Property: For sellers, this includes all agreed-upon marketing strategies
• Handling Offers: Accepting, presenting, and negotiating offers and counteroffers
• Completing Transactions: Assisting with the transaction process from offer acceptance to closing
• Providing Closing Statements: Furnishing detailed closing statements to all parties involved in the transaction

Importance of Understanding Your Agency Relationship

Before disclosing any confidential information to a real estate licensee, it is essential to understand your agency relationship. This understanding ensures that your interests are adequately protected and that you are aware of the duties and obligations your agent owes to you.

For more information or to discuss your specific needs, contact us and we’ll provide detailed guidance based on your unique situation.