AGENCY

Listing Agent

Buyer

Sellers

Selling Agent

Which side of the “Fence” are you

on?

Listing Broker/Salesperson is Agent for the seller-Client Selling

Broker/Salesperson is subagent for the seller-Client

TRADITIONAL AGENCY RELATIONSHIPS

Buyer

NO REPRESENTATION

SALESPERSON MUST TREAT BUYER:1. Fairly & Honestly, and

2. Disclose to the Buyer known facts that may affect value

1. Loyalty

2. Obedience

3. Disclosure

4. Confidentiality

5. Accounting

6. Reasonable Care

SELLER___FIDUCIARY DUTIES OWED BY AGENT TO CLIENT:

TRADITIONAL AGENCY RELATIONSHIPS

Listing Broker/Salesperson is Agent for the Seller-Client

Selling Broker/Salesperson

is AGENT for Buyer-Client

Buyers

BUYER AGENCY BROKERAGE SYSTEM

2 Agents & 2 Clients

BUYER AGENCY BROKERAGE SYSTEM

• The Selling Real Estate Agent is on the Buyer’s side of the (fence) transaction. He must :

• Negotiate for the lowest price possible, and

• Structure the transaction to the Buyer’s advantage

FIDUCIARY DUTIES OWED BY BOTH AGENTS TO CLIENTS:

1. Loyalty 4. Confidentiality

2. Obedience 5. Accounting

3. Disclosure 6. Reasonable Care

“Results when Buyer -Client wishes to purchase property listed

with the same company ( in-house listing)”

Buyers

BROKER /SALESPERSON CANNOT DISCLOSE:

Price Seller is willing to accept

Price Buyer is willing to pay

Personal confidences that may put one party at a disadvantage

DUAL AGENCY RELATIONSHIPS

Sellers

Broker/Salesperson (s) becomes a mediator for both Buyers and Sellers

Listing Agent and Selling Agents are the same person and do not represent either party- He/She is a mediator!

How is a Buyer’s Agent Paid?

Like other goods & services, brokerage fees or commissions are already built into the price of the property being purchased.

SELLING PRICE COMMISSIONS AND OTHER CLOSING COSTS

NET TO SELLER

LISTING BROKERRECEIVES PART OF

COMMISSION

SELLING BROKER RECEIVES PART OF

COMMISSION

-My company could participate in the sellers offered fee split

-We can instruct the seller to pay my company in the buyer’s behalf

-The buyer can pay my company directly upon closing escrow