| Before
you enter into a discussion with a real estate agent regarding a
real estate transaction, you should understand what type of agency
relationship you wish to have with that agent. In North Carolina, a
real estate agent is required to disclose which party he or she
represents at the first substantive contact with a homebuyer. Assume
that any real estate agent is a seller’s agent or seller's sub-agent
until you've signed a buyer agency agreement with an agent of your
choice.
Seller’s Agent:
- Just like a buyer's agent a seller’s
agent (listing agent) can help you find and purchase property,
and must disclose material facts, such as a leaking roof or
other known structural problems.
- A seller’s agent cannot disclose personal
and confidential information about the sellers or their
property, such as an impending divorce or how much a seller is
willing to lower his/her asking price.
- A seller’s agent has a legal duty to
get the best possible price for the seller, so when you are a
buyer looking for a home always
assume any information you give a seller’s agent will be passed
on to the seller.
- A seller's agent has an obligation to
deal fairly and honestly in the negotiation process with
you, but legally cannot negotiate on your behalf such as
advising you on how much to offer or what the owner will accept.
Buyer’s Agent:
- An agent who has agreed to represent
the buyer's interest.
- A buyer’s agent's loyalty is to you.
- A buyer's agent cannot disclose personal
and confidential information about you, such as your net
worth, other properties you own or what you might be willing to
spend for the property.
- A buyer's agent has a a
fiduciary duty
to negotiate the purchase of a home at a price and on terms
acceptable to you.
- An exclusive buyer’s agency agreement
normally ties you to one agent for a specified period of time,
and is legally binding.
- A non-exclusive buyer’s agency agreement
does not tie you to one agent although most buyers stay loyal to
their agent.
- An agent who works for the firm that
hold’s a seller’s listing, and who has agreed to represent the
buyer purchasing that listing.
- The dual agent cannot offer undivided
loyalty to either the buyer or seller.
- The dual agent cannot disclose
confidential personal information about either party,
nevertheless a dual agent must always disclose all material
facts.
- Dual agency must be agreed to in writing
by both buyer and seller.
- The listing broker's office assumes the
role of Dual Agent.
- There are two designated agents within
the office to work the transaction, one for the seller, one for
the buyer.
- A designated agent cannot offer undivided
loyalty to either the buyer or seller.
- Dual agency with a designated agent must
be agreed to in writing by both buyer and seller.
In essence, being a fiduciary
requires agents to place the interest of their client above their
own. When representing a buyer or seller, an agent agrees to protect
and promote the interests of their client. This obligation of
absolute fidelity to the client's interest does not relieve agents
of the obligation to treat all parties fairly and honestly.
- Obedience - act as authorized
- Loyalty - act in the interest of the
client
- Disclosure - disclose relevant
information to the client and all material facts
- Confidentiality - never reveal
confidential information regarding the client
- Accountability - maintain and furnish a
true and complete accounting of money
- Reasonable Care or Diligence - be
attentive to the client's affairs and take care to discover
facts and report them to the client
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