Page 7 - Buyer's Guide

Agency Relationships

Seller’s Agency / Listing Agent:

A seller’s agent acts solely on behalf of the seller. A seller’s agent has fiduciary duties to the seller which include
reasonable care, undivided loyalty, confidentiality and full disclosure. Although a seller’s agent does not
represent the buyer, a seller’s agent must treat buyers honestly and fairly. A seller’s agent must also disclose all
material facts about the seller’s property that are known by the broker. A seller’s agent must:
• Prepare a competitive market analysis of the seller’s home or property
• Develop and implement effective marketing strategies for the seller, including asking price, staging, and
positioning
• Inform the seller how much other homes and properties have sold for in the area
• Present all offers and counsel seller on what price to accept
• Negotiate exclusively on the seller’s behalf
• Update the seller on market conditions
• Prepare an estimate of closing costs
• Work closely with seller to assure a smooth closing
• Monitor all dates, events, and requirements for the seller
• Represent the seller’s interest at the buyer’s walk-through inspection
• Attend the closing with the seller

Dual Agency:

Legal in all 50 states, Dual Agency occurs when a real estate firm representing the buyer shows the buyer
properties where the firm has also agreed to be an agent of the seller. A real estate firm can be an agent of both
the buyer and the seller in a transaction with the knowledge and written consent of the buyer and seller. A Real
Estate firm acting as a dual agent must carefully explain to both buyer and seller that they are representing both
parties and their fiduciary duties are different if they represent both parties. When representing the seller and
the buyer, the agent must have the express permission of the respective party in order to disclose confidential
information to the other party, such as price, terms and motivation to sell or buy. A Dual Agent owes the buyer
and the seller equal representation, and must:

• Treat both parties fairly
• Not knowingly represent one party to the detriment of the other
• Disclose facts each party needs to make an informed decision
• To assist, as the Buyer and Seller are empowered to negotiate on their own behalf
• Assure confidentiality on each party’s price, terms, and personal information

Buyer’s Guide

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