Does Your Real Estate Agent Work for You?

Agent Loyalties and Disclosures

You're buying a home. Does your real estate agent truly work for you?
In the past, home buyers often assumed their real estate agent worked in their behalf. After all, the agent showed them lots of properties, called regularly to tell them about new listings, wrote the offer to purchase, and answered questions about mortgages and other issues related to the sale. Buyers felt free to give confidential information to an agent, unaware that it was the agent's duty to pass the information on to the seller.

Today, many states have enacted laws to help protect and educate buyers. Most real estate agents are required to disclose whom they work for. The disclosure may take place at your first face-to-face meeting, during a phone call, or by e-mail, but it should always be made before a real estate agent asks for specific information about your needs

Disclosure Terms

Seller's Agent

An agent working for the real estate firm the seller has employed to sell property.
In a Multiple Listing situation, all offices work to sell each other's listings, so even if another firm holds the actual contract, all real estate agents are sub agents for the seller.

• A seller's agent may ask you to sign a statement that verifies she disclosed her agency status to you. It is not a contract, simply a disclosure.
• Buyers should not disclose confidential information to a seller's agent.

Buyer's Agent

A real estate agent who has signed an agreement to work in the best interests of a buyer.

• The agreement is a contract, and by signing it you are (usually) committing to work exclusively with that agent.
• Agreements can remain in force for any period of time you both agree to, even as little as one day.
• A Buyer Agency Agreement doesn't necessarily mean you must pay a fee to the agent. They are usually paid a portion of the seller's commission fees at closing. However, a contract may state you will pay the agent a fee if you purchase a For Sale By Owner home, so discuss that scenario with your agent before signing.

Dual Agent

Dual agency occurs when a Buyer's Agent shows the client a listing held by her own real estate firm.

• It's more difficult to handle dual agency, since the agent has responsibilities to both parties.
• Dual agency must typically be disclosed to the buyer and seller in advance, and both must agree to it in writing.

*Original work published by About.com