Understanding Agency
Coldwell Banker Milestone: Agency Explained
Our job is to help both Sellers and Buyers accomplish their individual goals with the least amount of stress and the most fun possible! Please understand that the sale or purchase of property does not innately establish an adversarial relationship between Seller and Buyer!
As REALTORS®, we are licensed by the State to represent a person for the sale or purchase of real property. While we express fairness and honesty in all aspects of the transaction, a Fiduciary relationship between Agent and Client is special because the agent owes the following duties to the client: loyalty, diligence, confidentially, obedience, disclosure, accounting, and reasonable care.
Through its agents and with signed acknowledgement of the parties involved, Coldwell Banker Milestone Real Estate offers the following agency representation:
Seller Agency: A seller agent is a licensee who acts on behalf of a seller or landlord in the sale, exchange, rental, or lease of real estate. The seller is the licensee's client and the licensee has the duty to represent the seller's best interest in the real estate transaction.
Buyer Agency: A buyer agent is a licensee who acts on behalf of a buyer or tenant in the purchase, exchange, rental, or lease of real estate. The buyer is the licensee's client and the licensee has the duty to represent the buyer's best interests in the real estate transaction.
Single Agency: Single agency is a practice where a firm represents the buyer only, or the seller only, but never both in the same transaction. Disclosed dual agency cannot occur.
Disclosed Dual Agency: A disclosed dual agent is a licensee acting for both the seller/landlord and the buyer/tenant in the same transaction with the knowledge and written consent of al parties.
The licensee cannot advocate on behalf of one client over another. Because the full range of duties cannot be delivered to both parties, written informed consent must be given by all clients in the transaction.
A dual agent may not reveal confidential information without written consent, such as:
1. Willingness of the seller to accept less than the asking price.
2. Willingness of the buyer to pay more than what has been offered.
3. Confidential negotiating strategy not disclosed in the sales contract as terms of the sale.
4. Motivation of the seller for selling nor the motivation of the buyer for buying.
Sub-Agency: A sub-agent is a licensee who works for one firm, but is engaged by the principal broker of another firm to perform agency functions on behalf of the principal broker's client. A sub-agent does not have an agency relationship with the customer.
Designated Agency: A designated agent is a licensee who represents one party of a real estate transaction and who owes that party client-level services, whether or not the other party to the same transaction is represented by another individual licensee associated with the same brokerage firm.
Facilitator: A facilitator is an individual licensee who assists one or more parties during all or a portion of a real estate transaction without being an agent or advocate for the interests of any party to such transaction. A facilitator can perform ministerial acts, such as showing property, preparing and conveying offers, and providing information and administrative assistance, and other customer-level services. This relationship may change to an agency relationship by entering into a written contract for representation, prior to the preparation of an offer.
Another Relationship: If another relationship between the licensee who performs the services and the seller, landlord, buyer or tenant is intended, it must be described in writing and signed by all parties to the relationship prior to services being rendered.