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Without a contract, your agent is the agent of the seller and must look after the best interest of the seller even if they are helping the buyer.
With a contract, your agent is the agent of the buyer, and must work for the best interest of the buyer. They are obligated by law to represent you and look out for your best interest.
Question for you to answer: Who do you want helping you buy a home, an agent representing the seller or one representing you? It is your choice.
My agent worked with me for nine months before I bought a home. No contract.
Agency laws and regulations vary widely among the states.
At minimum, in NC, I would have to have you sign a disclosure recognizing that I am working for the sellers' best interests, in seller subagency.
Seller subagency is not legal in some states, and in some there is also imputed buyer agency from first meeting in effect. Not where I live and work, and not in many states.
NC Real Estate Commission says we have to have a written buyers agency agreement in place for me to legitimately assume a fiduciary role and to legally write an offer for you as your buyer's agent.
Yes, we have some jacklegs who don't want to"bother people with all that paperwork." There are crooks in all endeavors, and that includes real estate brokerage.
In my reality, the agent works for me if I am paying the commission. If his cut comes from me, then I call the tune. No doubt you can work for a buyer but not in my time stream. I assume you disclose to the seller that you are representing the buyer. And yes I realize that an agent can work for both parties. I would never agree to that.
In reality, you may be smart to decline dual agency. I tell all clients to decline dual agency in the buyers agency or listing agreements.
In your case, your misunderstanding of buyers agency indicates clearly that you require full representation from an agent.
There is no dual agency in Colorado. Buyers can be represented by a buyer's agent or they can have a neutral party to write contracts and follow the contract but not advocate or advise.
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Quote:
Originally Posted by kokonutty
You can't or you won't?
I think she had clarified that already.
Unless instructed to do so by the client, an agent working for the seller cannot advise a buyer in any way that could undercut the seller getting the highest price and best terms for the property.
In my reality, the agent works for me if I am paying the commission. If his cut comes from me, then I call the tune. No doubt you can work for a buyer but not in my time stream. I assume you disclose to the seller that you are representing the buyer. And yes I realize that an agent can work for both parties. I would never agree to that.
A lot of people like to argue round and round about who is paying the commission. Technically, it is the Seller who is paying the commission (usually) to their Listing/Seller's Agent. That commission is paid under the terms of a written listing agreement. Under a separate written agreement (in order to be enforceable) the Listing Agent will oftentimes agree to pay another agent who brings a Buyer to the table. As a Buyer's Agent, I never have had contracts with a Seller about any commission. My contracts for a commission are always with the Listing Agent because they are the ones who are paying me. (Sometimes those commission agreements are spelled out in the terms of the MLS.)
Of course, if it makes you feel better, you can always agree to pay a Buyer's Agent directly. However, that would not affect the agency relationship.
There is no need for me to disclose to a Seller that I am representing the Buyer. That is a given. If a Seller is confused about anything, they need to seek clarification from their agent. Besides, as a Buyer's Agent I have no direct contact with the Seller. All communications go through their agent (except on rare occasions when I get permission from the Listing Agent to contact them directly).
Finally, I believe that you are correct to avoid Dual Agency (which is not even permitted in some states). I have long maintained that a "Dual Agent" is a misnomer. A person can't have two masters and represent the best interests of both...for then they fail to serve as a true agent.
Without a contract, your agent is the agent of the seller and must look after the best interest of the seller even if they are helping the buyer.
That may be true in some states, but it is not the case in every state.
Quote:
Originally Posted by oldtrader
With a contract, your agent is the agent of the buyer, and must work for the best interest of the buyer. They are obligated by law to represent you and look out for your best interest.
Again, whether a written contract is required will vary by state.
A lot of people like to argue round and round about who is paying the commission. Technically, it is the Seller who is paying the commission (usually) to their Listing/Seller's Agent. That commission is paid under the terms of a written listing agreement. Under a separate written agreement (in order to be enforceable) the Listing Agent will oftentimes agree to pay another agent who brings a Buyer to the table. As a Buyer's Agent, I never have had contracts with a Seller about any commission. My contracts for a commission are always with the Listing Agent because they are the ones who are paying me.
Of course, if it makes you feel better, you can always agree to pay a Buyer's Agent directly. However, that would not affect the agency relationship.
There is no need for me to disclose to a Seller that I am representing the Buyer. That is a given. If a Seller is confused about anything, they need to seek clarification from their agent. Besides, as a Buyer's Agent I have no direct contact with the Seller. All communications go through their agent (except on rare occasions when I get permission from the Listing Agent to contact them directly).
Finally, I believe that you are correct to avoid Dual Agency (which is not even permitted in some states). I have long maintained that a "Dual Agent" is a misnomer. A person can't have two masters and represent the best interests of both...for then they fail to serve as a true agent.
Understand your thoughts and concur. I have seen "dual agency" and run from it. However, I do believe that it is best by far to involve an agent in the process rather than a FSBO. Nothing but grief there. The OP did not mention that one.
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