Representing the Seller:

Most sellers of real estate choose to list their home for sale with a real estate brokerage. When they do so, they sign a listing agreement that authorizes the brokerage and the listing agent to represent their interests. As the seller's agent, the brokerage and listing agent must: follow the seller's lawful instructions, be loyal to the seller, promote the seller's best interests, disclose material facts to the seller, maintain confidential information, act with reasonable skill and care, and account for any money they handle in the transaction.

Representing Buyers:

When purchasing real estate, buyers usually choose to work with a real estate agent as well. Often the buyers want to be represented in the transaction. This is referred to as buyer's agency. A brokerage and agent that agree to represent a buyer's interest in a transaction must: follow the buyer's lawful instructions, be loyal to the buyer, promote the buyer's best interests, disclose material facts to the buyer, maintain confidential information and account for any money they handle in the transaction.

Dual Agency:

In some transactions, the same agent and brokerage that represent the seller also represent the buyer. This is referred to as dual agency. When a brokerage and its agents become "dual agents," they must remain loyal to both parties in the transaction. They may not advocate the position of one client over the best interests of the other client or disclose any confidential information to the other party without written consent.

Designated Agency:

On occasion, the buyer and seller may be represented by two different agents from the same brokerage. In this case, the agents may each represent the best interest of their respective clients. Or, depending on company policy, the agents may act as dual agents. When either of the above occurs, the principal broker will always be a dual agent. As a dual agent, the principal broker cannot advocate for the position of one client over another. The principal broker will also protect the confidential information of both parties.

Working With A Real Estate Company:

Some real estate companies offer designated agency. Therefore, the potential exists for one agent to represent a buyer who wishes to purchase property listed with another agent in that company. If this occurs, each agent will represent his or her own client, but the real estate company and its principal broker will act as a dual agent.

This means the principal broker will not take any actions that will favor one side over the other. The real estate company will still supervise both agents to assure that their respective clients are being fully represented and will protect the parties' confidential information.

In the event that both the buyer and seller are represented by the same agent, that agent and the real estate company will act as a dual agent, but only if both parties agree. As a dual agent, the agent will treat both parties honestly, prepare and present offers at the direction of the parties, and help the parties fulfill the terms of any contract. They will not, however, disclose any confidential information that would place one party at an advantage over the other or advocate or negotiate to the detriment of either party.

If dual agency occurs, you will be asked to consent to that in writing. If you do not agree to your agent acting as a dual agent, you can ask that another agent in our company be assigned to represent you or you can seek representation from another brokerage.

As a buyer, you may also choose to represent yourself on properties the real estate company has listed. In that instance, the real estate company will represent the seller and you would represent your own best interests. Because the listing agent has a duty of full disclosure to the seller, you should not share any information with the listing agent that you would not want the seller to know.

Working With Other Brokerages:

When a real estate company lists property for sale, it also cooperates with, and offers compensation to, other brokerages that represent buyers.

As a seller, you should understand that just because a real estate company shares a fee with a brokerage representing the buyer, it does not mean that you will be represented by that real estate company. Instead, that company will be representing the buyer and the real estate company will be representing your interests.

When acting as a buyer's agent, the real estate company also accepts compensation offered by the listing broker. If the property is not listed with any broker, or the listing broker does not offer compensation, Estate Source will attempt to negotiate for a seller-paid fee.