Many home buyers and sellers have difficulty understanding the roles of real estate agents in a purchase or sale. You may be unsure who your agent is, how loyal they are, and what rules there are regarding agent relationships.
Agents must give sellers and buyers an agency disclosure form. This clarifies these issues. California’s disclosure form is not a contract between the parties, but a disclosure from one side to another. This form explains the various agency functions involved in buying or selling a house and specifies the rules that agents must follow. It is mandatory that all parties read it in order to understand what to expect of each other. The form allows them to choose the type and level of agency relationship they want.
Single Agency
Agents who represent clients through a single agency have to treat clients with the same level of care. Although it sounds nice, it is not a legal requirement. There are certain rules and regulations that must be followed.
All real estate agents have a fiduciary obligation to their clients. This includes many things. However, the most important is that agents must act in the client’s best interests and cannot share confidential information with other parties or their agent. Agents working in a single agency need to exercise care and diligence, be truthful, and disclose all relevant facts.
Buyer’s Agents vs. Seller’s agents
People who are looking for homes work as buyer’s agents and agents for their agents. People listing their homes for sale use agents who act as single agencies.
The buyer’s agent and buyer will often sign a broker agreement. This outlines the obligations and duties of the agent. If buyers don’t sign the form with an agent, the agent may not represent them in certain states. They become sub-agents of the seller.
The seller’s listing agent and the sub-agent share the same duties. A listing agreement is signed by the seller’s agent as well as the seller. It also sets out the obligations and duties of the agent. Both listing agents and buyer’s agents owe their clients loyalty and confidentiality.
This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Looking for Las Olas Isles homes for sale, we are the real estate team for you!
