seller and has legal obligations, called fiduciary duties, to the seller. These duties include, without limitation, reasonable care, undivided loyalty, confidentiality, full disclosure and the duty to account.
Seller’s agents often work with buyers, but do not represent the buyers. In working with buyers or their representatives, a seller’s agent must act honestly and treat all parties to a transaction fairly. A seller’s agent may not make any misrepresentations to either party on matters material to the transaction, such as the buyer’s financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property, which a reasonable inspection by the agent would uncover.
Seller’s agents include all persons licensed with the brokerage firm, which has been authorized through a listing agreement to work as the seller’s agent. In addition, other brokerage firms may accept an offer to work with the listing broker’s firm as the seller’s agents. In such cases, those firms and all persons licensed with such firms are called “sub-agents.” Sellers who do not desire to have their property marketed through sub-agents should so inform the seller’s agent.
BUYER’S AGENT
A buyer’s agent works only for the buyer to negotiate the purchase of a home at a price and on terms acceptable to the buyer. The buyer’s agent solely represents the interests of the buyer and has fiduciary duties to the buyer. These duties include, without limitation, reasonable care, undivided loyalty, confidentiality, full disclosure, and the duty to account.
Buyer’s agents often work with sellers, but do not represent the sellers. In working with sellers or their representatives, a buyer’s agent must act honestly and treat all parties to a transaction fairly. A buyer’s agent may not make any misrepresentations on matters material to the transaction, such as the buyer’s financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property which a reasonable inspection by the agent would uncover.
Buyer’s agents include all persons licensed with the brokerage firm, which has been authorized through a brokerage servicesagreement to work as the buyer’s agent.
DISCLOSED DUAL AGENT
A disclosed dual agent represents both the buyer and seller in a real estate transaction. To work as a dual agent, a firm must first obtain the informed written consent of the buyer and the seller. Disclosed dual agency is most likely to occur when a buyer’s agent shows the buyer properties owned by sellers who are represented by the same brokerage firm that the buyer’s agent is affiliated with.