Working With Agents
 When
purchasing property in NC, your
agent must act as
either a buyer's agent, a seller's
agent, or a dual agent. The buyer
has their choice of one of the types
of agencies.
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SELLER
AGENCY
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An agent under a listing agreement with
a seller acts as the agent for the seller.
The listing company and all of its agents,
and the selling company and all of its agents,
as subagents of the seller, owe their fiduciary
duties to the seller. In other words, a
seller's agent works for the seller.
BUYER
AGENCY
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An agent under contract with a buyer acts
as the agent for the buyer only. Buyer’s
agent must disclaim the usual sub agency
offered by the listing agreement and must
disclose the buyer agency relationship whenever
dealing with the seller’s agent or the seller.
The buyer's agent represents the buyer.
In the vast majority of cases, buyer's agency
is FREE to the buyer. There are
no fees. Most seller's agree at the time
they list their homes to compensate agents
whether they are acting as a buyer's agent
or a seller's agent.
Read ALL
3 Forms Below. They are what are required
to contract Georgia as a Buyer's Agent
DISCLOSED
DUAL AGENCY
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An agent, either acting directly or through
one or more of the brokerage firm’s other
agents, may be the agent of both the buyer
and the seller, only if the agency is limited
by a written agreement and only with a written
consent of both the buyer and the seller.
An agent representing both the buyer and
the seller must disclose all relevant information
regarding the agency relationship, including
the limitation on the agency’s ability to
represent either party fully and exclusively.
The agent must not disclose to either party
without the prior consent of the party adversely
affected by the disclosure, any information
obtained within the confidentiality and
trust of the fiduciary relationship.
The agent must not tell the
buyer that the seller will accept a price
lower than the listing price, nor
tell the seller that the buyer will pay
a price higher than the price offered. Basically
a dual agent acts as a liaison.THE ROLE OF
REAL ESTATE AGENTS
Everyone involved in a real estate transaction
should understand the unique role of real
estate agents. This role has been
defined over the years by law and by custom.
In the past, real estate agents generally
worked for the sellers, assisting them
in finding qualified buyers for their
property. Thus, buyers were typically
considered customers, and the real estate
agent’s fiduciary obligations remained
solely with the seller.
Recently, more and more home buyers have
sought exclusive representation throughout
the real estate transaction process.
With the advent of buyer agency, many
issues have emerged concerning the role
of real estate agents.
IS YOUR
AGENT REALLY YOUR AGENT AND HOW CAN YOU
BE SURE?
As soon as you begin discussions with
a real estate agent, you should understand
what type of agency relationship or representation
exists between you and the agent.
There are three types of agency relationships:
seller agency, buyer agency, and dual
agency.
Before examining these relationships
in detail, let’s review some basic definitions.
BASIC DEFINITIONS
An AGENT is one who represents another,
called the PRINCIPAL or CLIENT, in dealings
with third persons. Such representation
is called AGENCY. An agency relationship
is created by written contract, but may
be implied by the actions of the parties.
Once an agency relationship is created,
it becomes a FIDUCIARY RELATIONSHIP.
Specific fiduciary duties include loyalty,
obedience, disclosure, confidentiality,
reasonable care and diligence, and accounting.
Once an agency relationship is created
and a customer further defines the nature
of agency relationships. A CLIENT
is a buyer or seller who is represented
by an agent. The agent provides
advice and also owes that principal the
fiduciary responsibilities we’ve just
noted: loyalty, obedience, disclosure,
confidentiality, reasonable care and diligence,
and accounting.
A CUSTOMER is entitled to honest treatment
including disclosure of material facts
known to the agent. The
"Customer" is not entitled to fiduciary
representation.
Under SELLER AGENCY, the agent has a
fiduciary obligation to the seller.
Under BUYER AGENCY, the agent has a fiduciary
obligation to the buyer. DUAL AGENCY
occurs when a real estate agent represents
both the buyer and seller in a real estate
transaction. This is lawful if the
agent gives full disclosure to all parties
and obtains their consent. Issues
of DISCLOSURE correspond with the type
of agency relationship involved.
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