Agency Types
Seller’s Agent
A seller’s agent, under a listing agreement with the seller, acts solely on the behalf of the seller. A seller can authorize a seller’s agent to work with subagents, buyer’s agents and/or transaction coordinators. A subagent of the seller is one who has agreed to work with the listing agent, and who, like the listing agent, acts solely on behalf of the seller. Seller’s agents and their subagents will disclose to the seller known information about the buyer which may be used to the benefit of the seller.
• A seller’s agent shall promote the interests of the seller above those of everyone else, including self.
• A seller’s agent will hold confidential the seller’s motivation for selling or the seller’s willingness to accept other than the listed price.
• A seller’s agent will present all offers.
• A seller’s agent will disclose all facts that might influence the seller’s decision to accept an offer to purchase, including knowledge of the buyer’s willingness to pay a higher price, if known.
• An exclusive seller’s agent is one who represents the sellers at all times and never the buyers, even where the broker acts as both the listing and the selling office or where the broker sells another broker’s listings. Buyers are customers, never clients.
• Certain individual services may be waived by the seller through execution of a limited service agreement.
Buyer’s Agent
A buyer’s agent, under a buyer agency agreement with the buyer, acts solely on behalf of the buyer. A subagent of the buyer is one who has agreed to work with the buyer’s agent, and who, like the buyer’s agent, acts solely on behalf of the buyer. Buyer’s agents and their subagents will disclose to the buyer known information about the seller which may be used to benefit the buyer.
• A buyer’s agent shall promote the interests of the buyer above those of everyone else, including self.
• A buyer’s agent shall keep confidential the buyer’s motivation for buying or the buyer’s willingness to pay a higher than listed price.
• A buyer’s agent will present all offers on behalf of the buyer.
• A buyer’s agent will disclose to the buyer all facts that might influence the buyer’s decision to make an offer to purchase, including the seller’s willingness to accept less than the listed price.
• Certain individual services may be waived by the buyer through execution of a limited service agreement.
Dual Agent
This where the licensee is the agent of both the buyer and the seller (with the broker’s permission). Written, informed consent is required from the buyer and seller. Brokers must establish a company policy re: dual agency. Please see your broker to review your company policy.
Do’s:
• Disclose all material facts about the property.
• Treat the buyer and seller honestly.
• Provide information about the property and neighborhood within U.S. Department of Housing and Urban Development (HUD) guidelines.
• Assist in the standard purchase agreement.
• Work diligently to complete the sale after the purchase agreement is accepted.
• Convey all of the buyer’s questions to the seller and obtain answers in writing.
• Disclose the buyer’s ability to buy and the seller’s ability to sell.
• Explain real estate terms and procedures. • Explain closing costs and procedures.
• Help the buyer obtain financing.
• Help the buyer arrange for property inspections.
Don’ts:
• Work to the detriment of either party.
• Discuss the motivation of either party.
• Disclose the price the seller will accept or the price the buyer will pay.
• Disclose the terms other than those in the agreements.
• Say anything that would hinder the bargaining position of either party.
• You are not a dual agent unless you are also representing the buyer. In order to represent the buyer, you should have a signed agency agreement. Be sure not to confuse the Disclosure Regarding Agency Relationship form as a contract. This is not a contract. The listing agreement is the creation of your agency relationship with the seller and a separate buyer’s agency agreement is the creation of your agency relationship with the buyer. Remember that all listings belong to the brokerage firm, not to individual agents. Therefore, dual agency can be created (if this is your company policy and forms you use reflect this policy) if you have a buyer under contract and are showing any company listing.
Transaction Coordinator
A transaction coordinator is responsible for managing and monitoring the transaction process by working with agents, clients, escrow companies and property management companies. A transaction coordinator is also responsible for maintaining escrow files, and the production, coordination and processing of all information and documents pertaining to the sale and escrow of each home. A transaction coordinator cannot use skills, knowledge or influence (including negotiating skills) to advance the transaction. Note: Some in our industry refer to their unlicensed staff as a transaction coordinator, but it is important to note that the term transaction coordinator from an agency perspective refers to a licensed person assisting with a transaction.