Ive heard about "agency." Who does a real estate agent really work for?
Many home buyers and sellers are confused about who real estate agents represent. Don't worry, they're not trying to disguise themselves. A quick look at the various types of agency should help:
- Seller agency
The most traditional situation is one in which the seller is represented by both the real estate company who lists the home for sale and the real estate company who brings in the buyer.
- Buyer agency
This is a relatively new trend in real estate. Just as a written Listing Agreement is required to represent a seller, a written Buyer Agency Agreement is required to represent a buyer. Under that written agreement, the agent represents the buyer with confidentiality and loyalty, and shares with the buyer any material information.
- Disclosed dual agency
In this case, an agent helps both the buyer and the seller. There must be informed consent of both the buyer and seller, using a written agreement with the involved broker(s). Special conditions apply regarding disclosures to both parties, including limitations on an agent's ability to represent either buyer or seller fully or exclusively.