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Buying A Home --
Understanding
Agency
Whether you're looking for a new home or
are getting ready to sell your present home, today's
fast-changing real estate market offers many choices
for working with a real estate company to accomplish
your goals. That's why it's important to understand
how agency- the relationship between you, and your agent
- Jerry Lee Hatley -really works.
Beginning July 1, 1995, the North Carolina
Real Estate Commission has mandated that a real estate
agent must disclose to you in writing who the agent
works for in the real estate transaction. ALL N.C. REAL
ESTATE LICENSEES must comply.
Agency is a long-established legal obligation
upon which all agent and client relationships are based.
Legally an agent is a person who acts on behalf of another
person- their client. If the agent is acting as an exclusive
seller's agent, the client is the seller. If the agent
is acting as an exclusive buyer's agent, the client
is the buyer. Agency creates "fiduciary duties"
between these parties. Those duties are as follows:
Loyalty- to act in your best interests
to the exclusion of all other interest.
Obedience- to obey promptly and efficiently
all lawful instruction of the client.
Reasonable Care & Diligence-
to work with you in pursuing any questions you have
regarding your purchase or sale and to disclose
all material facts about the home.
Accounting- to account for all monies
or paperwork promptly in the transaction.
Disclosure- to keep the client fully
informed at all times of all facts the broker obtains
that affect the transaction.
Exclusive Seller Agency
When you list your home for sale, you employ
the real estate company as your "seller's representative"
to act exclusively on your behalf and in your best interests.
You will sign a listing agreement which will outline
the duties of your agent and their company, how long
the contract will be in effect, under what conditions
a commission will be earned, to whom, those fees will
be paid-to a seller's agent, buyer's agent, or both.
When you list your home for sale, Jerry Lee Hatley
will represent you and your interests.
Exclusive Buyer Agency
When you want to purchase a home you may
want an exclusive buyer agency- your agent and their
company represents you exclusively instead of the seller.
The buyer agreement states the obligation of the buyer
and the buyer's
agent, the duration of the contract, under what conditions
a fee will be paid, and by whom.
Dual or Limited Agency
An agent can only serve as dual agent with
informed consent. The possibility of this dual agency
must be agreed to prior to the seller listing their
home for sale and before the buyer signs a buyer agency
contract. This enables the company to show and sell
their "in house" listings. When the buyer
wants to purchase that "in house" listing,
dual agency must be consented to again in writing prior
to writing the contract. The seller must consent again
as well prior to reviewing and negotiating the received
offer.
The reason for the consent is because the
agent and their company that was an exclusive representative
of the seller and an exclusive representative of the
buyer, now is acting as a representative of both. A
dual agent has a limited range of fiduciary duties to
the buyer and the seller. A dual agent is limited on
the duty of loyalty and in the disclosure of confidential
information. The dual agent provides the services necessary
to complete the "in house" sale and treat
all parties to the transaction honestly. When dual agency
occurs, the real estate company and other agents shall:
Disclose to the buyer all material
facts about the physical condition of the property.
Assist in property inspections
required by the buyer
Be bound to the original fiduciary
duties in the agency agreement with the exception of
undivided loyalty and full disclosure.
Diligently facilitate the sale
of the property after the purchase agreement or sales
contract has been accepted.
When dual agency occur, Jerry Lee
Hatley shall not disclose:
The motivation of the seller
to sell or the buyer to buy
Price and terms either party
may offer or accept other than those in the listing
contract or purchase agreement
The negotiating strategy of
either party or any confidential information that would
jeopardize the position of either
party- unless express written permission has been given
by the buyer/seller.
Your real estate company is ethically required to
disclose to you their policy on agency. Ask questions.
You should know the reputation of your realtor. Deal
with someone you trust. You should expect to receive
honest treatment regardless of your agency relationship.
CONTINUE
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