When buying or selling a home, you may come across different types of working relationships between real estate professionals and their clients. These relationships, defined by state laws, determine how an agent represents you in a transaction. While the specifics vary by location, here are the key things to know:
What Does It Mean to Have an Agent?
When you hire a real estate professional to represent you, they become your agent. A seller’s agent works in the seller’s best interests, typically to secure the best price and terms. This relationship is formalized through a listing agreement. A buyer’s agent represents the buyer’s best interests throughout the transaction. Due to recent changes by the National Association of REALTORS®, many buyer’s agents now require a signed buyer agreement before showing homes.
Different Types of Agency Relationships
- Single Agency: The agent represents only one party—either the buyer or the seller.
- Dual Agency: The same agent represents both the buyer and seller. This is allowed in some states with disclosure and consent due to potential conflicts of interest.
- Subagency: A cooperating agent works on behalf of the seller, assisting their agent in finding a buyer. The subagent owes fiduciary duties to the seller, not the buyer.
- Designated Agency: Agents from the same brokerage represent both parties, with different agents assigned to the buyer and seller to reduce conflicts.
What About Non-Agency Relationships?
In a non-agency relationship, a real estate professional can assist with the transaction without formally representing the buyer or seller. One example is a transaction broker (or facilitator), who remains neutral and helps both parties negotiate terms without fiduciary obligations. Whether this is allowed depends on state law.
Do You Have to Work with an Agent?
No, your relationship with a real estate professional can be agency or non-agency, depending on what’s permitted in your state. However, many buyer’s agents now require a written agreement before touring homes.
Finding the Right Agent
Choosing the right real estate professional is crucial. If you’re looking for expert guidance in buying or selling a home, Lisa Nederlander is here to help. With deep market knowledge and a commitment to your best interests, Lisa ensures a seamless and successful transaction.
Because agency laws vary by state, it’s always a good idea to consult a real estate professional or attorney to understand your options. For more details, visit facts.realtor.
