Agency
The concept of agency with regard to real estate and
business brokerage has been evolving rapidly over the past ten or so
years. The issues involve
representation, i.e. whom a Broker represents in a specific transaction.
Please read the following carefully in
order to fully understand the relationship you will have with our firm.
Seller’s
Agent:
A Seller’s Agent acts solely on behalf of and has fiduciary
duties to the Seller. By contractual agreement, the Seller becomes a
client of the listing Brokerage firm (Seller’s Agent).
A Seller’s Agent, in performing their duties,
will present the listed business or property to prospective
Buyers. The Buyer’s are
not represented by the Seller’s agent, but must be dealt with fairly
and honestly.
Buyer’s
Agent:
A Buyer’s
Agent acts solely on behalf of and has fiduciary duties to the Buyer. By contractual agreement, the Buyer becomes a client of the
Brokerage firm. A Buyer’s
Agent owes undivided loyalty to the Buyer, but must deal fairly and
honestly with the Seller. The
duties of the Buyer’s Agent should be clearly expressed in the
contract between the Buyer and the Broker.
Dual
Agent:
A Dual Agent
acts as agent for both the Buyer and the Seller with mutual written
consent from both parties. Buyer
and Seller must be aware that in a dual agency transaction, neither
party has the undivided loyalty of the Broker, but, instead, the Broker
must remain neutral. Dual
agency can usually be avoided and every effort should be made to do so.
In the rare
instance where dual agency is necessary, the Broker should put in
writing what his duties will be to both parties. These duties should be essentially the same for both parties.
Lastly, we
would encourage you to interview more than one firm before making a
decision.
It is important that you feel comfortable with the intermediary
that you choose
as you will be relying on them to quarterback or conduct your
team. Brokers,
like businesses, come in all shapes and sizes!
