Duties to Buyer:
If the real estate firm and its agents represent you they must--promote
your best interests--be loyal to you--follow your lawful instructions--provide
you with all material facts that could influence you decisions--use
reasonable skill, care and diligence, and--account for all monies
they handle for you. Once you have agreed (either orally or in
writing) for the firm and it's agents to be your buyer's agent,
they may not give any confidential information about you to sellers
or their agents without your permission. But until you make this
agreement with your buyer's agent,
you should avoid telling the agent anything you would not want a
seller to know.
Unwritten Agreements:
To make sure that you and the real estate firm have a clear understanding
of what your relationship will be and what the firm will do for
you, you may want to have a written agreement. However, some firms
may be willing to represent and assist you for a time as a buyer's
agent without a written agreement. But if you decide to make an
offer to purchase a particular property, the agent must obtain a
written agency agreement. If you do not sign it, the agent can no
longer represent and assist you and is no longer required to keep
information about you confidential. Furthermore, if you later purchase
the property through an agent with another firm, the agent who first
showed you the property may seek compensation from the other firm.
Be sure to read and understand any agency agreement before you sign
it.
Services and Compensation:
Whether you have a written or unwritten agreement, a buyer's agent
will perform a number of services for you. These may include helping
you--find a suitable property--arrange financing--learn more about
the property and--otherwise promote your best interests. If you
have a written agency agreement, the agent can also help you prepare
and submit a written offer to the seller.
A buyer's agent can be compensated in different ways. For example,
you can pay the agent out of your own pocket. Or the agent may seek
compensation from the seller listing agent first, but require you
to pay if the listing agent refuses. Whatever the case, be sure
your compensation arrangement with your buyer's agent is spelled
out in a buyer agency agreement before you make an offer to purchase
property and that you carefully read and understand the compensation
provision.
Seller's Agent Working With a Buyer:
If the real estate agent or firm that you contact does not offer
buyer agency or you do not want them to act as your buyer agent,
you can still work with the firm and its agents. However, they will
be acting as the seller's agent (or "subagent"). The agent
can still help you find and purchase property and provide many of
the same services as a buyer's agent. The agent must be fair with
you and provide you with any "material facts" (such as
a leaky roof) about properties.
But remember, the agent represents the seller -- not you -- and
therefore must try to obtain for the seller the best possible price
and terms for the seller's property. Furthermore, a seller's agent
is required to give the seller any information about you (even personal,
financial or confidential information) that would help the seller
in the sale of his or her property. Agents must tell you in writing
if they are sellers' agents before you say anything that can help
the seller. But until you are sure that an agent is not a seller's
agent, you should avoid saying anything you do not want a seller
to know.
Sellers' agents are compensated by the sellers.
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