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’ 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 l promote your best interests l be loyal
to you l follow your lawful instructions l provide you with all material facts
that could influence your decisions l use reasonable skill, care and diligence,
and l 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 l helping you price your property l advertising and marketing your
property l giving you all required property disclosure forms for you to complete
l negotiating for you the best possible price and terms l reviewing all written
offers with you and l 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 l what your
relationship is with the dual agent and l 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 Buyers:
If the real estate firm and its agents represent you, they must l promote your
best interests l be loyal to you l follow your lawful instructions l provide
you with all material facts that could influence your decisions l use reasonable
skill, care and diligence, and l account for all monies they handle for you.
Once you have agreed (either orally or in writing) for the firm and its agents
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 l find
a suitable property l arrange financing l learn more about the property and
l 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 clear understanding of l what your
relationship is with the dual agent and l 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 seller’s 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.
Seller’s agents are compensated by the sellers.
The North Carolina Real Estate Commission
P.O. Box 17100 l Raleigh, North Carolina
27619-7100
919/875-3700 l 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
ACTION REALTY___________________________
Firm Name
ALAN HOLCOMBE__________________________
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.
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