By: Sarah Boha
“Who are all of these people”? Buyer Agent, Seller Agent, Dual Agent – There
are many roles one Realtor can play in a real estate transaction. As a consumer, it may not seem clear who is
who when you’re buying or selling your home.
As a Realtor, it is our job to make these business relationships
apparent to the public. In the state of
Pennsylvania, a consumer notice disclosed by the State Real Estate Commission
must be presented by your PA Licensed Realtor upon the first meeting. The Pennsylvania real estate consumer notice
is a two page, menu of services describing the agency relationships a consumer
may enter into during the sale or purchase of real estate.
Here is a simple guide to understanding the business
partnerships you may enter into as a consumer of real estate, inspired by the
Pennsylvania Real Estate Commission’s Consumer Notice.
What is a
Seller/Listing Agent?
A seller or listing agent works exclusively with a
seller/landlord in the sale of real estate.
A business relationship should not be presumed until you
have signed an agreement outlining the terms, commission structure and length
of the partnership. Note, you may
interview many agents to sell your home prior to your final selection.
Once you have signed an agreement with your preferred
Realtor, it is their duty to work exclusively to present a ready, willing and
able buyer for your property.
Your designated listing agent must keep all confidential
information, confidential, with the exception of known material defects of the
home. Known material defects of a home
must be disclosed to the consumer.
What is a Buyer Agent?
A buyer agent represents a buyer in the purchase of real
estate.
A business relationship should not be presumed until you
have signed a buyer agency agreement. In
the buyer agency agreement, you may select the length of your partnership with
your chosen Realtor.
As a consumer, you have a right to choose ANY licensed
Realtor in your state to represent you in the purchase of real estate – (as per
a signed buyer agency agreement). Bear
in mind, if the agent you wish to represent you is with “ABC Realty”, for
example, and you want to see a house with “XYZ Realty”, the Realtor with ABC
Realty CAN show you the house listed by XYZ Realty. A licensed real estate agent in your state
can show you any home listed in your area that you choose; it is one of many
rights you have as a consumer of real estate.
Once a buyer agency agreement is signed, by you and your
preferred Realtor, your Realtor is obligated to keep all information you
disclose confidential. Your Realtor is
strictly bound to represent your best interest in a transaction, unless the
agent you’ve selected has a listing in which they are representing the seller;
as a consumer, you may opt for a Dual
Agency relationship in this scenario.
What is a Dual
Agent?
A dual agent represents both the buyer and seller in a real
estate transaction, with prior written consent from both parties.
A dual agent must work equally for both the buyer and seller
and may not “take any action that is adverse or detrimental to either
party”.
A dual agent must disclose known material defects about the
property.
What is a
Transaction Licensee?
A transaction licensee only provides real estate services
and does not have an agency agreement with a consumer. With no agency relationship, a transaction
licensee is not obligated to keep consumer information confidential.
Although a transaction licensee does not provide you with
representation, they are prohibited from disclosing the following:
·
The seller will accept a price less than the
asking price.
·
The buyer will pay a price greater than the
price submitted in the written offer.
·
The seller or buyer will agree to finance terms
other than those offered.
A transaction licensee must disclose known material defects
about the property.
Regardless of the business relationship entered into with a
licensee, all agents must deal honestly and in good faith with all consumers of
real estate. If it isn’t clear who is
representing who when other agents are introduced into your negotiation, it is
your right as a consumer to stop and ensure that you are making an informed
decision in the buying or selling of real estate.
Click Here to Review the PA Real Estate Consumer Notice
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