REALTOR’S DUTY

In a typical real estate transaction the broker is an agent of the seller. The seller is the principal and the buyer is the customer. The broker is required to deal fairly with all parties to a transaction and to comply with all aspects of the license law; however, the broker is strictly accountable only to the principal, in this case the seller. The customer (in this case) represents himself or herself.

BUYER AGENCY

Buyers seeking equal representation in a real estate transaction began to demand more of a broker. In an effort to provide the services that customers/buyers demanded, brokers began to offer a Buyer Agency Agreement. Although required to deal fairly with all parties, the agent is strictly accountable to the principal, in this case the buyer. The seller is represented by the listing agent.

When you would like a real estate professional to represent your interests in the purchase of real estate, you choose Buyer Agency. When entering into a contract for Buyer Agency, the real estate agent owes the client certain duties.

CARE AND COMPETENCE - The real estate agent must exercise care and competence when transacting the business of real estate. The client expects the Realtor’s skill and expertise to be superior to other agents. The Realtor should help the client to locate suitable property, evaluate the property's value, and negotiate counter offers with the buyer’s interest in mind.

OBEDIENCE - The Realtor should act in good faith at all times obeying the client’s legal wishes in accordance with the Buyer Agency Agreement.

ACCOUNTING - The Realtor is responsible to the client for all funds collected and must be accountable for these funds with information about the escrow account. The Realtor should provide copies of all checks and documents affected by the client.

LOYALTY - The Realtor owes the utmost loyalty to the client. This means the Realtor places the interest of the client above all others, including self-interest. Confidentiality about the personal matters of the client is a key element of the relationship and agreement. The Realtor may not disclose any personal matters about the client without written consent of the client. The Realtor is always obligated to disclose any material facts about the property to all parties.

DISCLOSURE - It is the duty of the Realtor to keep the client informed about all facts or information that could affect the transaction. These facts include material facts or relevant information that the agent knows or should know. The buyer agent is obligated to discover facts that a reasonable person would feel are important in choosing a course of action, regardless of whether the facts are favorable or unfavorable to the client’s interests.