Agency
Disclosure Brochure
Each states laws of agency may vary somewhat, it is important
and many times required that a seller or a buyer be given
a Disclosure brochure before engaging
in any aspects of the real estate business. Take the time
to read and understand paperwork.
Where do I find a Brochure Ask any real estate professional in the area
that your buying a home or property, to send you a copy.
You can also pick one up from their office.
Some
States laws require real estate agents
to clearly disclose to all parties in
a real estate transaction which party(s)
he or she is representing. Real Estate
Agents typically represent Sellers but
can also represent Buyers as well as
both Buyers and Sellers. Information
about the different types of real estate
representation practiced in these states
is listed below. You may be asked to
sign an Agency Representation Disclosure
Form to confirm that the Real Estate
Agent identified on the form disclosed
to you before you signed any document
related to the transaction who he or
she is representing in a real estate
transaction.
What
Does It Mean to Represent A Seller? A real estate agent who enters
into an agreement to sell property for
an owner is known as the “Listing
Agent” or “Agent for the
Seller.” A Listing or Seller’s
Agent represents the Sellers in the
transaction. That means that the Listing
or Seller’s Agent may assist the
Buyer who is not represented in purchasing
the property, but the Listing or Seller’s
Agent’s primary duty is to protect
and promote the interests of the Seller.
As a Buyer not represented by a Real
Estate Agent you should keep any information
that may place you at a disadvantage
in negotiations confidential and undisclosed
to the Seller or the Seller’s
Agent since that Seller’s Agent
has a duty to pass that information
on to the Seller. Confidential information
may include the Buyer’s real estate
needs or motivations, the highest price
the Buyer is willing to offer, negotiating
strategies or tactics, or financial
situation.
What
Does It Mean to Represent A Buyer? A real estate agent who enters
into an agreement to only represent
the Buyer in a real estate transaction
is known as the “Buyer’s
Agent.” A Buyer’s Agent
represents the Buyer in the transaction.
That means that the Buyer’s Agent
may assist the Seller who is not represented
in selling the property, or deal with
the Seller’s Agent, but the Buyer’s
Agent’s primary duty is to protect
and promote the interests of the Buyer.
As a Seller not represented by a Real
Estate Agent you should keep any information
that may place you at a disadvantage
in negotiations confidential and undisclosed
to the Buyer or the Buyer’s Agent
since that Buyer’s Agent has a
duty to pass that information on to
the Buyer. Confidential information
may include the Seller’s reason
or motivation for selling, the lowest
price the Seller will accept, negotiating
strategies or tactics, or financial
situation
. What
Does It Mean to
Represent Both Seller and Buyer? A Real Estate Agent who enters
into an agreement to represent the Seller
and also enters into an agreement to
represent the Buyer in the same transaction
is known as a “Dual Agent.”
A Dual Agency most frequently occurs
when a Real Estate Agent or Agents within
the same real estate firm represent
both Seller and Buyer in the same transaction.
Both Seller and Buyer must have given
their written consent to such dual representation
prior to or at the time of execution
of any Agency Agreement, Listing Agreement,
or Real Estate Contract. Both Seller
and Buyer should be aware that a possible
conflict of interest may exist in this
type of representation. A Dual Agent
limits the duties described above in
representing the Seller and Buyer by
written agreements found in the Agency
Agreement, Listing Agreement, or Real
Estate Contract. For instance, when
representing both Seller and Buyer the
Dual Agent would not disclose to one
party confidential information obtained
from the other party.
*Data Source: (http://www.state.ar.us/arec/AgcyRep.htm)
SC Real Estate
Real
Estate Finance
Learn
about different types of
financing and find out what
types of loans may best
suit you.
Real
Estate Finance
