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Make Sure You Understand The
Different Types of Agency
Agents Who
Represent The Seller
- Seller's Agent
A seller's agent works for the real estate company that lists and markets the property for
the sellers, or landlords, and exclusively represents the sellers or landlords. That
means that he or she may assist the buyer or tenant in purchasing or renting the property,
but his or her duty of loyalty is only to the sellers or landlords. The seller pays
the seller's agent's fee as specified in a written listing agreement.
- Cooperating Agent
A cooperating agent works for a real estate company different from the company
for which the seller's agent works. The cooperating agent can assist a buyer or
tenant in purchasing or renting a property, but his or her duty of loyalty is only to the
sellers or landlords. The cooperating agent's fee is paid by the sellers or
landlords.
Agents Who Represent The Buyer
- Buyer's Agent
A buyer's agent acts on a buyer's behalf in locating a property to buy or rent. A
buyer's agent assists the buyer in evaluating properties, preparing offers, and negotiates
in the best interests of the buyer or tenant. The buyer's agent's fee is paid by the
seller, if offered in the listing agreement, or otherwise agreed upon by the buyer.
Studies:
- Federal Trade Commission Survey on Traditional Agency
80% of buyers stated the selling agent played a major role in negotiating w/ the
seller
71% of buyers thought the agent represented them
31% of buyers working with the listing agent thought the agent represented them
73% of buyers told "their" agent the maximum price they could afford
82% of buyers believed whatever they told "their" agent was confidential
As a result of these findings and subsequent revisions in state law/regulations,
NAR,
code of ethics was revised in 1993, 1994, and the current code as of January 1, 1995, to
address the emergence of buyer agency.
- Agents must disclose to both buyers and sellers of who
they represent at their first meeting.
- Buyers must sign an agency disclosure before they view
property, disclosing who the agent represents. This disclosure must be included with
any purchase agreement.
I hope that this page has helped you understand the different ways that an agent can
represent you.
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