This can be a confusing term, which unfortunately needs to be understood as it involves serious legal responsibilities. As an agent a realtor can act for the buyer or seller or to a limited degree for both. No matter which, they are obligated to protect and promote the interests of their clients.
Here is what is expected:
- Undivided loyalty
- Complete confidence
- Exercise reasonable care and skill in performing all assigned duties
- Be accountable for all money and property placed in the agent's care while acting for the client.
"Disclosure"
It is legally required for an agent to disclose to customers, for whom they act. This is done with a brochure entitled ‘Working with a Real Estate Agent'. There is a portion to be signed and retained by the agent as proof that disclosure was made. The various agency relationship options are explained. Here's a brief explanation of each.
- Seller's Agent
This agent is also known as a Listing Agent. This is the agent who markets the home on MLS and through other various media resources and it is their job to attract qualified buyers and effect a sale at the highest possible price.
- Buyer's Agent
This agent acts on behalf of the purchaser and their knowledge of the community and it's property values and the local real estate market ensures that the purchaser gets the best house at the lowest possible price.
- Dual Agency
This is what happens when a listing agent shows his/her listing to a buyer who also happens to be his/her own client. The agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously. This conflict of interest means it is necessary to obtain the consent of both parties to continue acting on their behalf but in a more limited capacity to each.
