WORKING WITH REAL ESTATE AGENTS
When buying or selling real estate, you may find
it helpful to have a real estate agent assist you. Real estate agents can
provide many useful services and work with you in different ways. In some real
estate transactions, the agents work for the seller. In others, the seller and
buyer may each have agents. And sometimes the same agents work for both the
buyer and the seller It is important for you to know whether an agent is
working for you as your agent or simply working with you while
acting as an agent of the other party.
This brochure addresses the various types of working relationships that may be
available to you. It should help you decide which relationship you want to have
with a real estate agent. It will also give you useful information about the
various services real estate agents can provide buyers and sellers, and it will
help explain how real estate agents are paid.
SELLERS
Seller's Agent
If you are selling real estate, you may want to
"list" your property for sale with a real estate firm. If so, you
will sign a "listing agreement" authorizing the firm and its agents
to represent you in your dealings with buyers as your seller's agent. You
may also be asked to allow agents from other firms to help find a buyer for
your property.
Be sure to read and understand the listing agreement before you sign it.
Duties to Seller: The listing firm and its agents must * promote
your best interests * be loyal to you * follow your lawful
instructions * provide you with all material facts that could influence
your decisions * use reasonable skill, care and diligence, and *
account for all monies they handle for you. Once you have signed the listing
agreement, the firm and its agents may not give any confidential information about
you to prospective buyers or their agents without your permission. But until
you sign the listing agreement, you should avoid telling the listing agent
anything you would not want a buyer to know.
Services and Compensation: To help you sell your property, the listing
firm and its agents will offer to perform a number of services for you. These
may include * helping you price your property * advertising and
marketing your property * giving you all required property disclosure
forms for you to complete * negotiating for you the best possible price
and terms * reviewing all written offers with you and * otherwise
promoting your interests.
For representing you and helping you sell your property, you will pay the
listing firm a sales commission or fee. The listing agreement must state the
amount or method for determining the commission or fee and whether you will
allow the firm to share its commission with agents representing the buyer.
Dual Agent
You may even permit the listing firm and its
agents to represent you and a buyer at the same time. This "dual
agency relationship" is most likely to happen if an agent with your
listing firm is working as a buyer’s agent with someone who wants to
purchase your property. If this occurs and you have not already agreed to a
dual agency relationship in your listing agreement, your listing agent will ask
you to sign a separate agreement or document permitting the agent to act as
agent for both you and the buyer.
It may be difficult for a dual agent to advance the interests of both
the buyer and seller. Nevertheless, a dual agent must treat buyers and
sellers fairly and equally. Although the dual agent owes them the same
duties, buyers and sellers can prohibit dual agents from divulging certain
confidential information about them to the other party.
Some firms also offer a form of dual agency called "designated
agency" where one agent in the firm represents the seller and another
agent represents the buyer. This option (when available) may allow each
"designated agent" to more fully represent each party.
If you choose the "dual agency" option, remember that since a dual
agent’s loyalty is divided between parties with competing interests it is
especially important that you have a clear understanding of * what your
relationship is with the dual agent and * what the agent will be
doing for you in the transaction.
BUYERS
When buying real estate, you may have several
choices as to how you want a real estate firm and its agents to work with you.
For example, you may want them to represent only you (as a buyer’s agent).
You may be willing for them to represent both you and the seller at the same
time (as a dual agent). Or you may agree to let them represent only the
seller (seller’s agent or subagent). Some agents will offer you a
choice of these services. Others may not.
Buyer’s Agent
Duties to Buyer: If the real estate firm and its agents represent
you, they must * promote your best interests * be loyal to you *
follow your lawful instructions * provide you with all material
facts that could influence your decisions * use reasonable skill, care
and diligence, and * account for all monies they handle for you. Once
you have agreed (either orally or in writing) for the firm and its agent to be
your buyer’s agent, they may not give any confidential information about you to
sellers or their agents without your permission. But until you make this
agreement with your buyer’s agent, you should avoid telling the agent anything
you would not want a seller to know.
Unwritten Agreements: To make sure that you and the real estate firm
have a clear understanding of what your relationship will be and what the firm
will do for you, you may want to have a written agreement. However, some firms
may be willing to represent and assist you for a time as a buyer’s agent without
a written agreement. But if you decide to make an offer to purchase a
particular property, the agent must obtain a written agency agreement. If you
do not sign it, the agent can no longer represent and assist you and is no
longer required to keep information about you confidential. Furthermore, if you
later purchase the property through an agent with another firm, the agent who
first showed you the property may seek compensation from the other firm.
Be sure to read and understand any agency agreement before you sign it.
Services and Compensation: Whether you have a written or unwritten
agreement, a buyer’s agent will perform a number of services for you.
These may include helping you * find a suitable property * arrange
financing * learn more about the property and * otherwise promote
your best interests. If you have a written agency agreement, the agent
can also help you prepare and submit a written offer to the seller.
A buyer’s agent can be compensated in different ways. For example, you
can pay the agent out of your own pocket. Or the agent may seek compensation
from the seller or listing agent first, but require you to pay if the listing
agent refuses. Whatever the case, be sure your compensation arrangement with your
buyer’s agent is spelled out in a buyer agency agreement before you make
an offer to purchase property and that you carefully read and understand the
compensation provision.
Dual Agent
You may permit an agent or firm to represent you
and the seller at the same time. This "dual agency
relationship" is most likely to happen if you become interested in a
property listed with your buyer’s agent or the agent’s firm. If this
occurs and you have not already agreed to a dual agency relationship in your
(written or oral) buyer agency agreement, your buyer’s agent will ask
you to sign a separate agreement or document permitting him or her to act as
agent for both you and the seller. It may be difficult for a dual agent
to advance the interests of both the buyer and seller. Nevertheless, a dual
agent must treat buyers and sellers fairly and equally. Although the dual
agent owes them the same duties, buyers and sellers can prohibit dual
agents from divulging certain confidential information about them to
the other party.
Some firms also offer a form of dual agency called "designated
agency" where one agent in the firm represents the seller and another
agent represents the buyer. This option (when available) may allow each
"designated agent" to more fully represent each party.
If you choose the "dual agency" option, remember that since a dual
agent’s loyalty is divided between parties with competing interests, it is
especially important that you have a clear understanding of * what your
relationship is with the dual agent and * what the agent will be
doing for you in the transaction. This can best be accomplished by putting the
agreement in writing at the earliest possible time.
Seller’s Agent Working
With a Buyer
If the real estate agent or firm that you
contact does not offer buyer agency or you do not want them to act as
your buyer agent, you can still work with the firm and its agents.
However, they will be acting as the seller’s agent (or
"subagent"). The agent can still help you find and purchase property
and provide many of the same services as a buyer’s agent. The agent must
be fair with you and provide you with any "material facts" (such as a
leaky roof) about properties.
But remember, the agent represents the seller – not you – and therefore must
try to obtain for the seller the best possible price and terms for the seller’s
property. Furthermore, a seller’s agent is required to give the seller
any information about you (even personal, financial or confidential
information) that would help the seller in the sale of his or her property.
Agents must tell you in writing if they are sellers’ agents before
you say anything that can help the seller. But until you are sure that an
agent is not a seller’s agent, you should avoid saying anything you do not
want a seller to know.
Sellers’ agents are compensated by the sellers.
The North Carolina Real Estate Commission
919/875-3700 | Web Site: www.ncrec.state.nc.us
REC 3.45 5/1/01
WORKING
WITH REAL ESTATE AGENTS
This is not a
contract
By signing, I acknowledge that the agent named below furnished a copy of this
brochure and reviewed it with me.
_______________________________________
Buyer or Seller Name (Print or Type)
_______________________________________
Buyer or Seller Signature
________________________________________
Buyer or Seller Name (Print or Type)
________________________________________
Buyer or Seller Signature
__________________________________________
Date
RE/MAX Preferred
Associates____________
Firm Name
C. Danl Keys NC Lic.# 198567
Agent Name
Disclosure of
Seller Subagency
When showing you property and assisting you in
the purchase of a property, the above agent and firm will represent the SELLER.
For more information, see "Seller’s Agent Working with a Buyer" in
the brochure.
Buyer’s Initials Acknowledging Disclosure: ______________
Agents must retain this acknowledgment for their files.