| What is a buyer's agent? | |||||||||||||||||||||||||||
| The concept of a buyer's agent is recent -- the first ones began appearing in the mid-1980s, in response to confusion over whom agents work for. Under the traditional agency system, an agent could work for a buyer AND a seller -- an obvious conflict of interest. His (or her) duty was to the person paying the sales commission, regardless of who first contacted the agent. What that meant was an agent didn't necessary represent the buyer's interests in achieving as low a home price as possible and having a full selection of properties from which to choose.
The buyer's real estate agent is a licensed real estate salesperson who, acting on behalf of a real estate brokerage company, enters into an agreement with a person seeking to buy a house under which the agent agrees to assist the buyer in finding and purchasing a house. A buyer's agent works exclusively for the home buyer, and cannot represent the seller unless specifically agreed upon by the buyer. The buyer's agent may be compensated by the buyer directly or may agree to share in the commission paid by the seller to the listing agent at closing. The purpose of having an agent when purchasing a home is to help you as a buyer, make good decisions! The buyer's agent and his or her brokerage firm owe the buyer the same duties of loyalty, obedience, disclosure, reasonable care and accounting as the listing agent owes the seller. The buyer's agent may assist in the negotiation and preparation of a purchase agreement and related documents from standard forms, but may not give legal advice unless he or she is a licensed lawyer. The buyer's agent and his or her brokerage firm may not also represent the interests of a seller unless the agent first obtains a written agreement from the seller, and also obtains the buyer's written consent after making a full disclosure to the buyer of the conflicts of interest involved in representing both a buyer and a seller, and the resulting limitations on the agent's ability to represent buyer's interests. |
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