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With Real Estate Agents Brochure" and Acknowledgement Card.
Working with Real Estate Agents
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 article 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's 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
-
promote your best
interests
-
be loyal to you
-
follow your lawful
instructions
-
provide you with all
material facts that could influence your decisions
-
use reasonable
skill, care and diligence, and
-
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 so long as they represent you. 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
-
helping you price
your property
-
advertising and
marketing your property
-
giving you all
required property disclosure forms for you to complete
-
negotiating for you
the best possible price and terms
-
reviewing all
written offers with you and
-
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
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 Buyer:
If the real estate firm
and its agents represent you, they must
-
promote your best
interests
-
be loyal to you
-
follow your lawful
instructions
-
provide you with
all material facts that could influence your decisions
-
use reasonable
skill, care and diligence, and
-
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 so long as they
represent you. 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
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 a clear understanding of
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 sellers'
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.
Sellers' agents are
compensated by the sellers.
The acknowledgement card for this
document is available
here for you to print, fill out,
sign and fax back to:
FAX: 252-586-7955
ATTN: Louis Leimone
Waterfront Properties at Lake Gaston, Inc
1698 Eaton Ferry Road
Littleton, NC 27850
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