Agency Relationships

     The term "agency" is used to describe any relationship in which a real estate broker acts for or represents another in a real estate transaction.  There are several types of agency relationships. 

    The most common agency relationships are that of Buyer's Agent, Seller's Agent and Dual Agent. 

    The BUYER'S AGENT  represents the Buyer  in the real estate transaction.  The Buyer is the Client in this relationship, and the Buyer's Agent has the following  responsibilities to the client:  loyalty, disclosure, confidentiality, obedience, reasonable care and diligence, and accounting for all funds.   If  you are not represented as a Client, you are a Customer. 

     As of July 1, 2000  Georgia law requires a written agreement between the real estate broker/agent and a Buyer Client.   A Buyers Agency agreement establishes that your agent represents you in the search and purchase of a home, and you agree to work only with that agent.   This agreement can be for one day, a week, a month, or any period of time.   If you enjoy visiting Open Houses or new home communities on the weekend, be sure to inform the host agent that you have a Buyer's Agent.

    Typically, the Buyer's Agent will assist you in your lender selection and loan pre-qualification, home search, tour of listed homes that meet your criteria, assist you in writing an offer for purchase, and present that offer to the listing agent for the seller's consideration. 

    After the Purchase and Sale Agreement is negotiated, the Buyer's Agent will schedule or assist you in scheduling your independent home inspection, and assist you in the negotiation of the Amendment to Remove Inspection Contingency.  (I make every effort to attend home inspections to be another pair of eyes and ears).

     It is the Buyer's Agent's responsibility to guide the buyer through preparations for closing,  review of the lender's Good Faith Estimate and HUD 1 (Settlement Statement), ordering of the hazard insurance policy and final property survey.   The Buyer's Agent should attend the closing with the buyers.

    The SELLER'S AGENT (LISTING AGENT)  represents the Seller in the transaction, and the Seller is the Client.  The Seller's Agent has the same fiduciary responsibilities to the Seller as the Buyer's Agent has to the Buyer.  The client relationship is established through a Listing Agreement, in which the term and all conditions of the listing are determined.

    Depending on the Listing Agreement, the Listing Agent may have the responsibility for ordering, maintaining and paying for initial and ongoing marketing.   The Listing Agent keeps track of property showings, makes every attempt to get constructive feedback from showing agents, and guides the Seller in creating the environment for the home to sell at the best price and terms. 

    When an offer comes in, the Listing Agent will review the offer with the Sellers and explain all aspects of the offer and their impact on the Sellers' legal position and net proceeds.  The Listing Agent will assist the Sellers in preparing the home for a home inspection and negotiating the Amendment to Remove Inspection Contingency. 

     The Listing Agent may also track the progress of the Buyer's loan, and keep in touch with the Selling Agent in regard to home repairs, termite reports, and closing details. 

    A DUAL AGENT is an agent who represents both the Buyer and Seller in a  single transaction and has a fiduciary responsibility to both parties.  This will happen if the Listing Agent sells his/her own listing to a Buyer Client.   Occasionally, an agent may work as a Transaction Agent, handling the paperwork but not representing the Buyer or the Seller.  PLEASE NOTE:  RE/MAX Northeast does not allow DUAL AGENCY, but may designate an agent to represent a buyer and a second agent to represent the seller.

    Whether representing the Buyer or Seller, the real estate agent must treat all parties in the transaction professionally, honestly, and must disclose known facts that may affect the value or condition of the house. 

    Real Estate Commission generally is paid by the Seller to the Listing Broker.

        If there is a second agent involved in the sale, for instance a Buyer's Agent,  half of the commission is paid by the Listing Broker to the Selling Broker.  For instance, if the total commission is  7% of the selling price, 3.5% would be paid to the Selling Broker and 3.5% to the Listing Broker.  Commission is negotiated with the seller at the time of listing.  This commission is paid to the Broker (not the agent), and the agent is paid by the broker in accordance to his/her broker contract.

       Finally,  every licensed real estate agent is not a REALTOR®.  Make sure your agent is a member of the National Association of Realtors® and the Georgia Association of REALTORS®.

Q 
Who pays the real estate broker? 

A 
Generally, the real estate commission is paid by the Seller to the listing agent.  If the Buyer is represented by a Buyer's Agent, the commission is split between the two real estate companies. 
 

Q
Who pays for the marketing and multiple listing fees for a listed home?

A
Typically, the Listing Broker or Agent pays all marketing costs.  In new home communities, the Builder often pays for marketing.
 

Q 
How can a Buyer's Agent help me in my home purchase? 

A
Although real estate agents use many marketing vehicles, including home magazines, 
multiple listing services and others,  home availability changes from one minute to the next.  A real estate agent can check new listings based on your criteria, find additional information and  and verify availability before touring the home.  Keep in mind that certain counties and cities, including Gwinnett County, Duluth, Alpharetta, and Decatur, prohibit real estate directional signs, so it is very difficult to drive around and and find homes for sale.

When it's time to make an offer, your agent can check neighborhood sale history and  the tax records for the home to determine the fair market value.  She will negotiate your contract, always keeping your  interests in mind.   After your contract is accepted, your agent will guide you through the process of loan application,  home inspection and
closing. 
 

Q
What are a Buyer's responsibilities under a Buyer's Agency Agreement?

A
Actually, a Buyer's Agency Agreement can be for any period of time, from one day to one year or beyond.  As a Buyer's Agent, I typically will show you properties listed by a real estate company agreeing to co-op, or a "For Sale By Owner" for which I have a written agreement with the Seller.    If you purchase a home you found through my efforts, the listing broker will split the commission with my broker, RE/MAX Northeast. 

If you find a listed home through my efforts and purchase it with my assistance, you will never be obligated to pay a real estate commission to RE/MAX Northeast. 
 

Q 
Is every real estate agent a REALTOR® ? 

A 
No.  Only agents belonging the National Association of REALTORS®, a professional organization,  are REALTORS®.     REALTORS®  are held to a strict code of ethics.  

 
 

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