When you are talking to a Realtor to help you purchase or sell your home, be sure to discuss the subject of “agency“. Is the Realtor working for the buyer or the seller or both?
- Seller Agent – As a seller’s agent, the Realtor works solely on behalf of the seller and owes duties to the seller which include utmost good faith, loyalty and fidelity. However, the agent must disclose to potential buyers all adverse material facts about the property which are actually known by the broker.
- Buyer’s agentBuyer Agent – As a buyer’s agent, the Realtor works solely on behalf of the buyer and owes duties to the buyer which include the utmost good faith, loyalty and fidelity. The buyer is legally responsible for the actions of the agent when that agent is acting within the scope of the agency. The agent must, however, disclose to potential sellers all adverse material facts concerning the buyer’s financial ability to perform the terms of the transaction.
- Transaction Broker – As a transaction broker, the Realtor assists the buyer or seller or both throughout a real estate transaction with communications, advice, negotiation, contracting and closing without being an agent for either party.