When thinking of buying or selling a house it’s easy to feel overwhelmed by “Real Estate Terminology”. Thankfully one of our agents has outlined the difference between the different types of agent/client relationships that can exist.
What is the difference between a “Listing Agent,” “Buyer Agent,” “Dual Agent,” “Designated Agent?”
Real estate agents, by law, are required to disclose the parties they represent. Understanding the scope of the service you can expect from the agents allows you to make a informed decisions about whether to seek your own representation or work with an agent.
If a seller enters a listing agreement with a broker to market seller’s real estate, the broker becomes an agent of the seller. The broker is strictly accountable to the seller.
If a buyer enters into contract with a broker to locate property, the broker becomes an agent of the buyer. The broker is strictly accountable to the buyer.
The broker represents both parties in the same transaction, with the use of the same agent for both buyer and seller. Dual agency requires equal loyalty to two different parties (buyer and seller) at the same time. The challenge is to fulfill the fiduciary duties to one party without compromising the interest of the other.
The broker represents both parties in the same transaction, BUT two different agents are involved. The brokers designates one agent to represent the seller and one agent to represent the buyer.