Agency Representation

Whether you are buying your first home or your tenth, today's consumers have the option to choose the type of representation they want when enlisting the expertise and knowledge of a real estate professional. Traditionally, most agents represented the seller. Today, however, home-buying consumers have the option to seek assistance with their search for the perfect home from a buyer's broker - a real estate professional who will agree to represent their sole interest.

Buyer agency involves an agent representing the buyer in a real estate transaction for a fee paid by, or on behalf of the buyer. Many buyer agency agreements specify that the seller will pay the commission. A buyer's agent is employed by a purchaser to get the best possible price and terms for a buyer.

A buyer's agent represents the buyer just as a seller's agent represents a seller. Other types of relations that can exist include the following:

Seller's subagent - the agent represents the seller in a transaction, and works with the buyer as a customer.

Dual agency - the agent represents both the buyer and the seller in the same transaction. This may only be done with the informed consent of both the buyer and the seller.

Designated Agency - This is a form of dual agency where one agent is designated to solely represent the buyer and another designated to represent the seller.

Before deciding on what type of representation is the best for you, the Raleigh/Wake Board of Realtors recommends that, in addition to the various forms of representation, you understand that the term "agency" refers to the fiduciary relationship that exists between a buyer or seller and the real estate agent who represents them. Some form of written disclosure is recommended between agents and the consumers they are working with, to help ensure there is no misunderstanding regarding agency relationships.

Currently, 46 states and the District of Columbia have mandated agency disclosure through either legislation or regulation. This requires real estate agents to inform the parties to a transaction whom they represent. The North Carolina Association of Realtors worked with the North Carolina Real Estate Commission to establish legislation that requires mandatory disclosure of agency by all real estate licensees effective July 1, 1995.

The changes in the way real estate professionals are representing consumers can be attributed to a better-educated public looking for flexibility and options in the buying process. The National Association of Realtors and the Raleigh/Wake Board of Realtors endorse freedom of choice and informed consent for consumers of real estate services when creating agency relationships with real estate professionals.

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  • RE/MAX United Offices, Raleigh-Cary, North Carolina
  • Kathy Sims
  • Certified Luxury Home Marketing Specialist
  • RE/MAX© Platinum Club
  • 51 Kilmayne Drive
  • Cary, North Carolina 27511
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  • Email: kathy@kathysims.com
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