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Realtors and their clients are required to formally document the nature of their
working relationship before beginning the process of actually finding a home.
In general, there are two types of “agency” relationships that can come
into play in the course of a traditional residential real estate transaction.
There’s the Buyer’s Broker relationship in which the Agent works only for
the Buyer and has obligations, called fiduciary responsibilities, to that Buyer.
These responsibilities include “undivided loyalty, reasonable skill and care,
confidentiality, obedience and disclosure.”
Of course, regardless of the underlying agreement, a Buyer’s Broker is required
to treat all parties, including the Seller and the Seller’s agent, fairly and
honestly and may not make misrepresentations on matters that are material to the
transaction. Not surprisingly, Sellers and their agents have similarly documented
relationships and those Agents have the equivalent responsibilities and obligations
to their clients and to prospective buyers.
There’s also the Limited Dual Agency relationship. Limited Dual representation
is a phenomenon that occurs if you wish to view the home of a Seller client of RE/MAX
Fine Properties. In this scenario, the Broker, RE/MAX Fine Properties, would be
representing both the Buyer and the Seller with some limitations on the duties owed
to either party.
In general, a brokerage firm acting in a limited dual representation capacity is
not permitted to put one party's interest ahead of those of the other party and
cannot advise or counsel either party on how to gain an advantage at the expense
of the other party. We are obligated to treat everyone fairly and honestly.
If you choose to work with me, these agreements and their implications will be explained
at our first meeting. However, if you wish to review those agreements in advance,
you can simply click on the image above.