Over recent years Real Estate trends and laws have changed considerably.
In the past, all agents represented the seller- even those who were working with buyers to find them a home. Many buyers did not understand that "their agent" was really working the in the interest of the seller putting them at a disadvantage by disclosing confidential information and neglecting to ask important questions.
Today both buyers and sellers can have their own representation during a transaction making and "equal playing field" for both parties. Buyers now should now take full advantage of hiring a buyer agent just as a seller should in hiring a sellers agent.
Types of Agency Relationships
Seller Agent- Represents the Seller and owes the client loyalty, reasonable care , disclosure, obedience to lawful instruction , confidentiality, and accountability but must disclose material defects about the property. Must negotiate in the clients best interest for best price and terms.
Buyer Agent- Represents the Buyer and owes the client loyalty, reasonable care , disclosure, obedience to lawful instruction , confidentiality, and accountability but must disclose material defects about the property. Must negotiate in the clients best interest for best price and terms.
Facilitator- Assists the Buyer or Seller in reaching an agreement. The facilitator does not represent the buyer or seller in the transaction.He or she must represent the property honestly and accurately and disclose any material defects and can account for funds. The facilitator does not own the duty to keep information confidential.A facilitator relationship can be changed if agreed to and exclusive agency to either buyer or seller.
Dual Agent- An agent may represent both sides of the transaction but only with expressed and informed consent of both parties prior to the offer to purchase. This leaves the agent neutral since he or she must keep information confidential limiting the full duties of a buyer or seller agent.
Designated Agent- A real estate agent can appoint another agent to represent either the buyer or the seller if the buyer or seller agrees to do so . Once the agent is designated he or she now represents either the buyer or seller and now owes the duties of a buyer or seller agent.
* In Massachusetts, when meeting an agent for the the first time whether it is to see property or discuss the sale of your home the agent should present you with the Massachusetts Mandatory Licensee Consumer Relationship Disclosure to ensure you know who the agent is representing and how they can represent you.
When at an open house look for a sign or tent card that explains if the agent is the Sellers agent or acting as a facilitator.
Remember do not disclose important information to an agent unless you are sure they are working for you!*
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