Trish Young The OC Realtor
Serving Orange County and Greater Los Angeles Areas!

Contact Us


Trish Young, e-Pro, SFR, Realtor®
714.335.6092
Trish@TrishOCRealtor.com

License # 01497916


UDERSTANDING REAL ESTATE REPRESENTATION


 

Understanding Real Estate Representation

By: G. M. Filisko

Published: March 29, 2010

Whether you’re buying or selling, it’s important to choose representation that meets your needs in the transaction.

1. Buyer’s agency

When you’re buying a home, you can hire an agent who represents only you, called an exclusive buyer’s representative or agent. A buyer's agent works in your best interest and owes you a fiduciary duty. You can pay your buyer’s agent yourself, or ask the seller, or the seller’s agent, to pay your agent a share of their sales commission.

If you’re selling your home and hiring an agent to list it exclusively, you’ve hired a selling representative--an agent who owes fiduciary duties to you. Typically, you pay a selling agent a commission at closing. Selling agents usually offer or agree to pay a portion of their sales commission to the buyer’s agent. If your seller’s agent brings in a buyer, your agent keeps the entire commission.

2. Subagency

When you purchase a home, the agent you can opt to work with may not be your agent at all, but instead may be a subagent of the seller. In general, a subagent represents and acts in the best interest of the sellers and sellers' agent.

If your agent is acting as a subagent, you can expect to be treated honestly, but the subagent owes loyalty to the sellers and their agent and can't put your interests above those of the sellers. In a few states, agents aren't permitted to act as subagents.

Never tell a subagent anything you don’t want the sellers to know. Maybe you offered $150,000 for a home but are willing to go up to $160,000. That’s the type of information subagents would be required to pass on to their clients, the sellers.

3. Disclosed dual agency

In many states, agents and companies can represent both parties in a home sale as long as that relationship is fully disclosed. It’s called disclosed dual agency. Because dual agents represent both parties, they can’t be protective of and loyal to only you. Dual agents don’t owe all the traditional fiduciary duties to clients. Instead, they owe limited fiduciary duties to each party.

Why would you agree to dual agency? Suppose you want to buy a house that’s listed for sale by the same real estate brokerage where your buyer’s agent works. In that case, the real estate brokerage would be representing both you and the seller and you’d both have to agree to that.

Because there’s a potential for conflicts of interest with dual agency, all parties must give their informed consent. In many states, that consent must be in writing.

4. Designated agency

A form of disclosed dual agency, “designated agency” allows two different agents within a single firm to represent the buyer and seller in the same transaction. To avoid conflicts that can arise with dual agency, some managing brokers designate or appoint agents in their company to represent only sellers, or only buyers. But that isn't required for designated agency. A designated, or appointed, agent will give you full representation and represent your best interests.

5. Nonagency relationship

In some states, you can choose not to be represented by an agent. That's referred to as nonagency or working with a transaction broker or facilitator. In general, in nonagency representation, the real estate professional you work with owes you fewer duties than a traditional agency relationship. And those duties vary from state to state. Ask the person you’re working with to explain what he or she will and won't do for you.

Other web resources

More on real estate agents' roles

G.M. Filisko is an attorney and award-winning writer who zealously protected her clients’ interests as a lawyer. A frequent contributor to many national publications, including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

 


TrishOCRealtor.com


Trish Young, e-Pro, SFR, Realtor®

Trish@TrishOCRealtor.com

714-335-6092


"To leave satisfied you must arrive prepared."

 

Consider this your home buyer’s toolkit. Open it up, take a look around, and if you like, start equipping yourself with the tools necessary to make your best purchase. In most businesses, knowledge equals power, and real estate is certainly no exception.

I hope you enjoy the free reports I’ve provided, and I hope you learn a little more about what it takes to make your important purchase a great one.

The real estate market in Mission Viejo is certainly volatile, and all of the information about buying a home can be overwhelming. I can help.

Buyers01.jpgWhen you're ready to act, contact me.

I fight on behalf of my buyers.
I negotiate the absolute best price.
I protect you.
I simplify your transaction for you as much as possible.

I look forward to working with you.

Thanks for stopping by,
Trish


Home Buyer Reports

Night02.jpg

Be sure not to pay too much for your home!
Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture...
Read More 

Night02.jpg 

Ensure A Smooth Home Purchase
Buying a home can be an emotional, time-consuming, and complex process...
Read More 

Night02.jpg 

Avoid the Most Common Buying Errors
Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details...
Read More 

Night02.jpg 

Things To Keep In Mind When Buying Your First Home
Many renters are starting to think about purchasing a home of their own. Several factors should be considered when purchasing a home...
Read More 

Home Search

Never miss the perfect home!  Search for your dream home now.  Begin Search  Home search
Exterior01.jpg
 

Buyer's Toolkit
 

Your Team
Your Plan
Your Calculator
Your Opinion
Your Real Estate News
 

Read More

Helpful Articles

Why hire a real estate professional?

AgentSold01.jpg

Home  |  Featured Listings  |  For Rent  |  Home Search  |  Home Evaluation  |  Calculators  |  Buying  |  Selling   |  Lifestyle   |  Home Improvement  |  Contact Me  |  Testimonials  |  Search MLS Listings  |  Utility Console  |  About California  |  For Buyers  |  For Sellers  |  Resources  |  Neighborhood  |  House and Home  |  About Me  |  Home - Style 1  |  Home Styling  |  Why Hire a Professional?  |  Art and Design  |  Show Home Photos  |  Home Search - Style 1  |  Testimonials  |  Do not pay too much  |  Smooth Home Purchase  |  Avoid Buyer Errors  |  Your First Home  |  Selling Your Home  |  Common Selling Mistakes  |  Selling Price  |  Money and Finance  |  Buyer's Toolkit  |  Tile Your Backsplash  |  Protect Your Pet at Home  |  Stain Removal  |  Backyard Pond  |  Sweet Smell of a Sale  |  Make yourself Scarce  |  Search All Listings  |  Search All Listings  |  Seller's Toolkit  |  Home and Garden  |  Moving your Pets  |  Tips for grilling  |  Backyard Composting  |  Careers and Education  |  Weddings and Style  |  Family  |  Technology  |  Real Estate  |  Real Estate Consumer Index Report

Privacy¬†Policy  |  Site Map  |  Profile  |  Sign In

©2007-2014 Landmark Realtors