|
Disclosure and Dual agency
Many buyers incorrectly assume that an agent is working on their behalf.
The fact is that in New York State, and many other states,
a real estate agent is working for the property seller, by default.
That means that during any negotiation about price or other factors
the
agent is obligated to look out for the seller's interests.
He has a fiduciary responsibility to the seller, not the buyer.
In NY, agents must advise their customers of the agency relationship
using
an agency disclosure form.
Page 1
Page 2
In a case where a buyer is trying to buy one of the real estate broker's
listings,
a situation is created called "dual agency". The real estate
office is now in an
awkward situation, trying to represent both sides of
a transaction.
As long as all parties are aware of that situation, it's legal, but not
necessarily
in your best interest as a buyer. When an agent has a
contract with the seller,
he cannot adequately represent a buyer's interests,
even though many buyers believe that's the case.
Buyer Agency Agreements
To get the most from your agent, it's a good idea to have a buyer agency
agreement.
A buyer agency agreement is a contract that obligates the agent to
protect
the buyer
by providing accurate information, to the best of his or her knowledge,
and find a suitable purchase.
In return the buyer agrees to make sure the agent gets a commission.
In many cases, all or a portion of that commission comes from the
selling side.
Every deal is different, and with a sale of a non-brokered purchase,
all of the commission could come from the buyer.
A buyer agent can be invaluable if you are buying in an unfamiliar area, too. Buyer agency is increasing in popularity
More and more buyers realize it's
good to have someone looking out for them,
and an increasing number of broker agencies
are also realizing the value of buyer agents. It can protect them
from trying
to represent both sides of a transaction,
because when one or the other sides are unhappy, lawsuits can result.
You can find out much more about buyer agency by searching online.
There are several organizations that train buyer agents
and provide helpful information.
Commission
No commissions are standard. Each situation is unique.
If you have any questions
about commissions, discuss it with your agent.
In many cases, a good
real estate agent can help their client earn or save a lot of money.
A buyer agency agreement is a meeting of the minds.
The agent provides a valuable service,
so real estate professionals receive a commission for the work they do,
either for seller or buyer.
|
