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I would love to see you post the link to a legal doc stating that an agent may disclose confidential information. Because I am pretty sure one of the few actual legally binding rules is client confidentiality.
Agents must disclose relevant data, but not how much a client can spend, that is just nonsense.
The rest of the fiduciary responsibilities tend not to worth much at all as the 'best interests" etc are very hard to prove and there is virtually no sanction when RE agents break those rules
Why? Mike Jaquish has been spelling out the very issue in 10 pages if this thread . He is using the legal or technical verbiage, while I've attempted translation for the non real estate world. Granted, not with perfection, but Mike has eloquently posted the roadmap for the points I was making. Different states follow different rules, but a good many follow what Mike has spelled out. It goes back a few decades where the real estate world acknowledged the seller pays the commission, so anyone the seller is paying, works for the seller, incuding the buyer's agent. I can't remember when agency and subagency started, but its "birth" was the result of the industry trying to provide options for the buyer. Keep in mind I am cramming 25+ years in less than 10 sentences. But go back and read Mike's posts - it's there.
Sub-agency is technically allowed by the state of NJ, but I know of not a single broker that allows it, brokers being unwilling to take on the huge risk that would create.
It is also mandatory in NJ that a Consumer Information Statement (CIS) be given and explained at first substantive contact. This document explains the different agency relationships available in the state. Our OP has not indicted what type of relationship he had with this agent. I doubt it was sub agency, however. My guess is that is a transaction brokerage relationship. In this case, the agent must be honest, work diligently, follow instructions. But a transaction broker is NOT required to keep any information confidential.
The text from the CIS says;
I thought transaction brokers generally wrote up the contract for both parties and were kind of paper pushers? Is a transaction broker different than dual agency there?
Just curious. We only have buyer agent, seller's agent, and disclosed limited agents here.
Shouldn't she have clearly stated that without the signed Buyer's agreement, she was representing the seller ? I expect that there would be some disclosure laws that go with Subagency status.
I'd fire her and re-instate the original offer making very clear that time it's final. Then start looking for a new agent and a new house. The economy is heading towards the end of the bull market, any real estate agent who has half a brain would try to build good relationships both ways. The fat years are coming to an end, at least for a while.
For all we know, the agent that wrote the offer explained the situation and process, but the OP had so much racing in their head, "don't over pay, cover myself here, don't get tied to this agent, I may not like her" and so on, there was no room to listen to what she had to say. I run across this every day, so much so, I now recap all conversations by email. When I'm trying to make sure the buyer understands what I've been trying to say, knowing full well the only thing they heard is their rate is higher due to a drop in their score due to a late car payment, they totally missed the part about how to document the gift coming in from another state. So much information is being passed along before the offer is even written, there's no way buyers can retain it all.
I thought transaction brokers generally wrote up the contract for both parties and were kind of paper pushers? Is a transaction broker different than dual agency there?
Just curious. We only have buyer agent, seller's agent, and disclosed limited agents here.
Dual agency requires confidentiality.
Transaction brokerage does not.
(I just love working with NC brokers who seem to think they are transaction brokers, a role we do not have here. )
I thought transaction brokers generally wrote up the contract for both parties and were kind of paper pushers? Is a transaction broker different than dual agency there?
Just curious. We only have buyer agent, seller's agent, and disclosed limited agents here.
The major difference is confidentiality.
A dual agent is specifically prohibited from sharing certain information without permission.
A transaction broker is not prohibited from sharing any information he has.
Clearly the subject of agency came up with the agent who wrote the offer for you. She asked you to sign a buyers agency agreement, and you declined. At that point, did you not further discuss agency, and in what manner she would work to present your offer? Did you get a copy of the NJ required Consumer Information Statement? Did you discuss the various forms of agency, and let her know which you preferred?
If she is your Buyer's agent, she has a duty to keep your information confidential. But you have told us she is NOT your Buyer's agent, because you didn't want that. Fair enough.
If she is a disclosed dual agent, she has a duty to keep your information confidential. But the property is listed by a different company, so dual agency isn't an option.
There is no other agency option in the state of NJ that requires the agent keep a buyer's information confidential. So it seems to me you should have had no expectation of confidentiality. This should have been explained to you before you wrote your offer. That's the purpose of the CIS document.
By the way, I instruct my buyers and sellers never to reveal their bottom line limit. Even to me. I want them to have full confidence in a pure negotiation. If you are a buyer, you should not tell your agent what your max is. If you are a seller, you should not reveal the lowest you will take for your property. Even if you have the protection of agency, keep that to yourself.
By the way, I instruct my buyers and sellers never to reveal their bottom line limit. Even to me. I want them to have full confidence in a pure negotiation. If you are a buyer, you should not tell your agent what your max is. If you are a seller, you should not reveal the lowest you will take for your property. Even if you have the protection of agency, keep that to yourself.
Of course, that strategy limits your ability to negotiate effectively. You can't draw a line in the sand & say "My client isn't going beyond this," with any authority, because you never know if it's true. And if you say it, then come back later to offer more, you've lost credibility.
We all use what strategies work best for us. But we should be aware of the limitations we create.
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