AGENCY RELATIONSHIPS
Agency is the relationship formed between a consumer and a Broker/Realtor who is hired to assist and represent him/her in a legal real estate transaction. The type of relationship formed between the Broker and the Client is called a fiduciary relationship. A fiduciary relationship is one based on trust because the Broker owes the following duties to the client:
- Loyalty
- Diligence
- Confidentiality
- Reasonable Care
- Disclosure
- Accounting
Agency duties are enforced so that the Clients can rely on the Broker putting the Clients' interests before that of anyone else. The Broker owes its allegiance to the Client.
In real estate transactions, an Agency Relationship is formed between the Real Estate Broker and the Client.
The Client may either be a Buyer or a Seller.
Traditional Agency
All Agents Represent the Seller
In traditional real estate transactions, a home seller agrees to list a property with a specific Broker, creating an Agency relationship between the Broker and the Seller. under the arrangement, the Broker represents the best interests of the Seller at all times during the sale process.
Seller's Agent
Represents Seller only. Price negotiations and information about the Seller of a personal nature are confidential between the Seller and Seller's Agent.
Seller's Sub-Agent
Represents Seller only. The same implied loyalty, trust and obligation to share information still exists between the Seller and the Seller's Sub-Agent (Cooperating Broker) as between Seller and Seller's Agent. The Listing Broker may offer sub-agency and terms of sub-agency through the Multiple Listing Services.
Buyer Agency
Each Side is Equally Represented
Buyer Agency is designed to allow the Buyer an opportunity to have a Broker represent him or her instead of representing the Seller.
Through Buyer Representation; the Buyer becomes the Client instead of the Customer and, the Broker works with the Buyer's bets interest in mind.
When a Buyer is represented by a Broker, all the fiduciary duties are owned by the Broker to the Buyer and not the Seller. The Buyer has the freedom to discuss the value of the property, negotiating strategies and personal finances with the Broker. The Buyer can obtain the opinion and advice of the Broker concerning the condition of the property, the structure of the offer, the Seller's motivation for selling, and a variety of information which a Seller's Broker cannot provide.
Buyer Customer
If you do not choose to be represented by Coldwell Banker as a Client and you simply wish to purchase a property through us you will be a Customer. As a Valued Customer we will assist you in your property search. However, we will not be acting as your Broker and you will not be receiving Broker representation.
Dual Agency
Each Side is Equally Represented Within the Same Brokerage
When we list a property, an Agency relationship is created between Coldwell Banker and the Seller. Throughout the listing period the Seller develops a level of trust in the Broker who is obligated to put the Seller's interest first.
Coldwell Banker may on occasion also form an Agency relationship with Buyers whereby Coldwell Banker is obligated to put their interest first.
If a particular Coldwell Banker Buyer/Client is interested in purchasing a property listed by Coldwell Banker a Dual Agency relationship is created because Coldwell Banker cannot exclusively represent both sides in a transaction.
Dual Agency
When one agency or Broker has a relationship with two Clients, one wanting to sell and the other wanting to buy.
When a dual agency is formed Coldwell Banker will notify and receive consent from each Client. Our fiduciary relationship with our Clients is based upon full disclosure and informed consent.
If dual agency arises, the Clients and the Brokers agree to modify the Agency relationship to neutral representation. The Brokers must not disclose information to either party that is confidential or would create a negotiating advantage for either Client. Dual agency limits the agency capacity of the Broker who begins to act more as a facilitator or mediator.
