What Kind Of Agent Are You Working With?
Are you working with a “Standard” agent, and Limited Services” agent or perhaps an “independent contractor” agent?
Whether you are buying property and looking for buyer representation or a seller looking for seller representation, be sure you know what kind of agency representation your real estate agent is providing you. The written agreement signed by both the brokerage and the client will establish the type of agency that a real estate agent will provide.
A “standard agent” means a licensee who acts for or represents a client in an agency relationship. This includes: confidentiality of all personal and financial information, ordinary care, timely accounting of all monies and property received, compliance with fair housing laws, honesty, disclosure of: material facts, evidence of defective drywall, and brokerage relationship, assist in drafting and negotiating of contracts, receive and present written offers, and facilitate the closing. In addition, for sellers, this includes: conduct marketing activities and seek contract terms acceptable to seller. For buyers, this includes: seek a type of property and terms for purchase acceptable to the buyer.
A “limited service agent” means a licensee who acts for or represents a client, pursuant to a brokerage agreement that states that the limited service agent will not provide one or more of the following duties:
Assist in drafting and negotiating of contracts,
Receive and present written offers, and
Facilitate the closing
For sellers: conduct marketing activities seeking a sale at a price and with terms acceptable to the seller
For buyers: Seek a property of a type acceptable to the buyer and at a price and on terms acceptable to the buyer
FOR EXAMPLE: A real estate agent that will enter your property into the MLS system for a fee but will not provide any of the other above listed services is providing “limited services agency.”
An “independent contractor” agency specifically states that the real estate agent is acting as an independent contract and NOT as an agent, and has obligations only as specifically outlined in the written signed brokerage agreement.
FOR EXAMPLE: If you buy a home with a seller directly, then decide you want to hire a real estate agent to attend and negotiate the home inspection contingency, this would be documented in an “independent contractor” brokerage agreement for a fee and would be the limit of the agent’s responsibility to the client.
For more information about the different agency types and how it affects, you, the prospective client when in a real estate transaction, feel free to reach out to us!
And remember, with us, advice is always free. Reach us at [email protected]