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Agency in a real estate transaction is basically who
represents whom. In
real estate agents are required to
disclose what their agency affiliation is with two main tools.
The first tool you will see is called
Working with Real Estate Agents Disclosure.
The Agency Disclosure brochure is a tool you will sign stating that you have
received a copy of the agency information contained in the brochure. This
brochure gives an overview of the different types of agency that is available.
This is not a binding contract.
The second paperwork you may see is called a Buyers Agency Contract
or in the
case of selling a home, a Exclusive Right to Sell (Listing Contract).
With both of these items you are telling the real estate agent that you want
them to work for and represent you.
Dual agency is also a type of agency that you may see if you come across a
property that you want to make an offer on and it is listed with the company
your agent is affiliated with. Also on the other side of the transaction,
if you have a property listed with a agent and either they or one of their
affiliated agent have a buyer for your property you may see a case of dual
agency. In this capacity the agent will act on behalf of both the buyer and
seller as a facilitator. They are not allowed to divulge confidential
information to either party about the other.
is when the agent only represents the seller. Generally
this will be the situation of a seller with one company represented by their
agent and a buyer purchasing through another company represented by their agent.
This can also be the case of a buyer looking at a property with a agent that
only represents the seller. In this situation the buyer has no
representation. Seller agency is commonly represented when a real estate
agent has a property listed for sale. The Listing agent represents only
the sellers interest.
- A agency relationship where the buyer is represented by the real
estate agent in the transaction. In order to enter into this relationship
you will be required to sign a Buyers Agency Contract.
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