Agency
What does it mean? Why should you care?
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Whether you are a buyer or a seller of real
estate you should know who the firm you are dealing with is working for
(the buyer, the seller, both or neither). If they won't assure you that
they are working for you be very cautious in giving them information.
At NJHomeBuyer.com Realty we ALWAYS work for the buyer. We will even put this
in writing in a contract with you if you desire. Oh, and NO, this does NOT
increase your cost of purchasing a home. In fact, we will work to help
you decrease your costs. Email
Paul Howard
The New
Jersey Real-Estate Commission has issued a consumer information statement
on New Jersey Real Estate Relationships. It defines four kinds of business
relationships that can exist between real-estate agents and their clients
or customers. Before you disclose confidential information to a real estate
licensee regarding a real estate transaction, you should understand what
type of business relationship you have with that licensee.
Buyer's Agent
A buyer's agent WORKS ONLY FOR THE BUYER.
A buyer's agent has fiduciary duties to the buyer which include reasonable
care, undivided loyalty, confidentiality and full disclosure. However,
in dealing with sellers a buyer's agent must act honestly. In dealing with
both parties, a buyer's agent may not make any misrepresentations on matters
material to the transaction, such as the buyer's financial ability to pay,
and must disclose defects of a material nature affecting the physical condition
of the property which a reasonable inspection by the licensee would disclose.
A buyer wishing to be represented by
a buyer's agent is advised to enter into a separate written buyer agency
contract with the brokerage firm which is to work as their agent.
Buyer's Agent
Seller's
Agent
Disclosed
Dual Agent
Transaction
Broker
Request
help from Paul
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Jersey Homes' main page
Seller's Agent
A seller's agent WORKS ONLY FOR THE SELLER
and has legal obligations, called fiduciary duties, to the seller. These
include reasonable care, undivided loyalty, confidentiality and full disclosure.
Seller's agents often work with buyers, but do not represent the buyers.
However, in working with buyers a seller's agent must act honestly. In
dealing with both parties, a seller's agent may not make any misrepresentations
to either party on matters material to the transaction, such as the buyer's
financial ability to pay, and must disclose defects of a material nature
affecting the physical condition of the property which a reasonable inspection
by the licensee would disclose.
Seller's agents include all persons
licensed with the brokerage firm which has been authorized through a listing
agreement to work as the seller's agent. In addition, other brokerage firms
may accept an offer to work with the listing broker's firm as the seller's
agents. In such cases, those firms and all persons licensed with such firms,
are called "sub-agents." Sellers who do not desire to have their property
marketed through sub-agents should so inform the seller's agent.
Buyer's Agent
Seller's
Agent
Disclosed
Dual Agent
Transaction
Broker
Request
help from Paul
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Jersey Homes' main page
Disclosed Dual Agent
A disclosed dual agent WORKS FOR BOTH THE
BUYER AND SELLER. To work as a dual agent, a firm must first obtain the
informed written consent of the buyer and the seller. Therefore, before
acting as a disclosed dual agent, brokerage firms must make written disclosure
to both parties. Disclosed dual agency is most likely to occur when a licensee
with a real estate firm working as a buyer's agent shows the buyer properties
owned by sellers for whom that firm is also working as a seller's agent
or sub-agent. A real estate licensee working as a disclosed dual agent
must carefully explain to each party that, in addition to working as their
agent, their firm will also work as the agent for the other party. They
must also explain what effect their working as a disclosed dual agent will
have on the fiduciary duties their firm owes to the buyer and to the seller.
When working as a disclosed dual agent, a brokerage firm must have the
express permission of a party prior to disclosing confidential information
to the other party. Such information includes the highest price a buyer
can afford to pay and the lowest price a seller will accept and the parties'
motivation to buy or sell. Remember, a brokerage firm acting as a disclosed
dual agent will not be able to put one party's interests ahead of those
of the other party and cannot advise or counsel either party on how to
gain an advantage at the expense of the other party on the basis of confidential
information obtained from or about the other party.
If you decide to enter into an
agency relationship with a firm which is to work as a disclosed dual agent,
you are advised to sign a written agreement with that firm.
Buyer's
Agent
Seller's
Agent
Disclosed
Dual Agent
Transaction
Broker
Request
help from Paul
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Jersey Homes' main page
Transaction Broker
The New Jersey Real Estate Licensing Law
does not require licensees to work in the capacity of an "agent" when providing
brokerage services. A transaction broker works with a buyer or a seller
or both in the sales transaction without representing anyone. A TRANSACTION
BROKER DOES NOT PROMOTE THE INTERESTS OF ONE PARTY OVER THOSE OF THE OTHER
PARTY TO THE TRANSACTION. Licensees with such a firm would be required
to treat all parties honestly and to act in a competent manner, but they
would not be required to keep confidential any information. A transaction
broker can locate qualified buyers for a seller or suitable properties
for a buyer. They can then work with both parties in an effort to arrive
at an agreement on the sale or rental of real estate and perform tasks
to facilitate the closing of a transaction.
A transaction broker primarily
serves as a manager of the transaction, communicating information between
the parties to assist them in arriving at a mutually acceptable agreement
and in closing the transaction, but cannot advise or counsel either party
on how to gain an advantage at the expense of the other party. Owners considering
working with transaction brokers are advised to sign a written agreement
with that firm which clearly states what services that firm will perform
and how it will be paid. In addition, any transaction brokerage agreement
with a seller or landlord should specifically state whether a notice on
the property to be rented or sold will or will not be circulated in any
or all Multiple Listing System(s) of which that firm is a member.
Buyer's Agent
Seller's
Agent
Disclosed
Dual Agent
Transaction
Broker
Request
help from Paul
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Jersey Homes' main page
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