Understanding Agency

When discussing real estate, you sometimes hear discussions about agency. An agent can be a buyer's agent, a seller's agent or a dual agent. Basically, agency means whose best interests the agent has. The agent has a fiduciary responsibility to the principal.

Seller Agency

Agents who represent a seller should have the seller's best interests at heart. These agents have an obligation to get the best price for the house and while they have to disclose material facts, they don't have to disclose personal information. Reasons for moving, waht the seller's bottom line is, etc., stay in confidence unless the agent has written permission to release it.

You might hear something about seller sub-agency. It used to be that all agents were sub-agents of the seller's agent and all had a duty to get the best price for the seller. No one represented the buyer. That has changed in Nebraska and now the default agency is buyer agency.

Buyer Agency

Agents who represent the buyer should have the buyer's best interests at heart. The agent can give advice on making offers and has to receive the best possible deal for the buyer. A buyer's agent is the friend of the buyer only, not the seller. Like a seller agent, the buyer agent has to keep confidential information private unless told he can release it.

There is a term thrown about sometimes and that is exclusive buyer agent. That means the agent is a buyer's agent only and does not accept listings.

Dual Agency

As you can imagine, if a seller agent has to do the best possible job for the seller and a buyer agent has to do the same for the buyer, dual agency is like walking a tightrope. This isn't a comfortable situation for an agent and some refuse to do it. If an agent is a dual agent, both the buyer and seller need to sign an agreement acknowledging the agent is diong his best for both. Confidential information about the buyer and seller remains confidential and the agent has to be careful about negotiating advice.

Summary

Any real estate agent you talk to can explain agency to you. If you list a house or talk to an agent about buying a house, one of the first things explained is that of agency. Who has your best interests at heart? Give us a call and we can help you sell a house, buy a house or just explain things for you.