Agency Laws are continuing to evolve.  The goal is to provide competent and professional service to our customers.  When there are potential conflicts in those fiduciary duties, the obligation of each agent is to disclose the nature of that conflict, and to obtain the consent of the parties involved in the transaction.  The following are some common terms:

This is a framework that has developed in the law to allow individuals to act through another person or representative.  This particularly occurs in commercial transactions.  Examples might include hiring an attorney to represent you in a business transaction, working with a stock broker to purchase stocks or other investments, or working with a real estate broker to buy or sell real estate.  Your legal agent may have unlimited or limited powers on your behalf.  Your legal agent owes you certain fiduciary duties such as confidentiality, promoting your best interests, exercising reasonable skill and care.

Seller’s (Listing) Agent

A seller’s agent works to assist the seller in locating a buyer and in negotiating a transaction suitable to the seller’s specific needs.  A seller’s agent has fiduciary duties to the seller which include loyalty, full disclosure, confidentiality, diligence, obedience, reasonable care, and holding trust moneys entrusted to the broker.  Although a seller’s agent represents the seller in the fiduciary capacity, they owe the buyer fairness and honesty.  If your agent is representing the seller, just what kind of service can you the buyer, hope to get?  Plenty, as agent of the seller, real estate professionals fulfill that agency relationship by assisting buyers in all aspects of a real estate purchase.  The law requires that all agents treat a buyer with honesty and fairness.  In addition to the law, there is a strong motivation to do so because buyer satisfaction means repeat and referral business.  I want you to think of us next time you or a friend is selling real estate.

Buyers in commercial transactions often work with a real estate agent.  Now, you may contract with the agent you are working with to represent you.  As a buyer, you have access to listings available to your buyer’s agent.  As a buyer, you will also receive other services from your buyer’s agent such as financing information, assistance in determining your particular price range, and assistance in facilitating the closing.  Typically, the buyer and the brokerage company will enter into a written brokerage agreement.  in addition, the buyer’s agent will owe you all of the fiduciary duties as defined in agency law, including loyalty, confidentiality, accountability, and reasonable care and skill.  The buyer’s agent will represent your best interests during the transaction.

In this type of situation, both the seller and buyer in a transaction are represented by the same legal agent.  In this case, there are specific statutory duties that the dual agent owes to both the buyer and seller.  Dual Agency is allowed only with your consent.  Upon entering into a brokerage agreement (whether as buyer or seller) you will be given a form explaining dual agency that seeks your consent to allow your agent to act as dual agent should the situation arise.