IS YOUR REALTOR REPRESENTING YOU?
Whether you are ready to buy or sell a home, you need straight talk…and you can get it from the professionals at Berkshire Hathaway HomeServices Florida Network Realty.
One area of confusion for buyers and sellers is the role real estate licensees have in real estate negotiations. Most consumers do not understand how representation works and believe that their agent is looking out for their best interests, but that isn’t always the case. When real estate professionals work with buyers and sellers, “agency” relationships are established. There are three kinds of agency relationships that happen between a consumer and a brokerage firm during a real estate transaction: No Brokerage Agreement, Transaction Agency and Single Agency. Berkshire Hathaway HomeServices Florida Network Realty offers the highest degree of accountability to its buyers: Single Agency.
No Brokerage Agreement
In a no brokerage agreement, the agent is simply handling the paperwork of the transaction and cannot represent or negotiate on behalf of the buyer or seller
As a transaction broker, the agent provides limited representation. The buyer or seller is a customer of the agent and has given up his or her right to undivided loyalty of the licensee. In other words, transaction agency representatives represent the transaction with limited representation and limited confidentiality. The agent must stick to the facts of the transaction, unable to offer opinions that may make a big difference in a buyer or seller’s decision-making process. A transaction broker may not work to the detriment of either party in a real estate transaction, but conversely they cannot work to benefit either party. Most brokers have opted for this limited representation.
The highest degree of accountability comes with single agency. As a single agent, the broker has a fiduciary relationship and owes complete allegiance to the buyer or seller, who is then referred to as a principal or client. By law, the agent must work to achieve the best terms for their principal.
Working with a company that operates in a single agency capacity offers many benefits to both buyers and sellers. Single agency representatives provide the customer with full representation, loyalty and confidentiality, which can increase the success for the customer during the transaction. In other words, Realtors who are single agents work to best serve the interests of their client, not the transaction.
There are times when Florida law does not allow a broker or Realtor to work in a single agent capacity. When the brokerage represents both sides of the transaction, the law requires the company to work as transaction agents. However, in this situation, nothing previously disclosed can be used to the detriment of either party.