Real Estate Articles Understanding Real Estate Agency Downloadable Real Estate Forms. 50%. Real estate agency laws vary from state-to-state, but the principles are for the most part universal: agents must "elect" a form of agency when they begin working with a given client, and that election must be explicitly stated and acknowledged by their client. In Michigan, the state in which my company operates, every Realtor is legally required to have every client sign something entitled "Disclosure Regarding Real Estate Agency Relationships," a document that specifies the nature of the agency relationship between the Realtor and their client. Here is an overview of the different types of agency relationships that exist within real estate: Seller's Agent A seller's agent acts solely on behalf of the seller. Seller's agents have a fiduciary responsibility to disclose to the seller known information about the buyer which may be used to the benefit of the seller. The duties that a seller's agent owes to the seller include: • Promoting the best interest of the seller • Fully disclosing to the seller all facts that might affect or influence the seller's decision to accept an offer to purchase • Keeping confidential the seller's motivations for selling • Presenting all offers to the seller • Disclosing the identities of all buyers and all information about the willingness of those buyers to complete the sale or to offer a higher price Learn Real Estate Secrets. Real Estate Finance Secrets That Can Make You Rich. Buyer's Agent A buyer's agent acts solely on behalf of the buyer. Buyer's agents have a fiduciary responsibility to disclose to the buyer known information about the seller which may be used to benefit the buyer. The duties that a buyer's agent owes to the buyer include: • Promoting the best interest of the buyer • Fully disclosing to the buyer all facts that might affect or influence the buyer's decision to tender an offer to purchase • Keeping confidential the buyer's motivations for buying • Presenting all offers on behalf of the buyer • Disclosing to the buyer all information about the willingness of the seller to complete the sale or to accept a lower price Disclosed Dual Agent A real estate licensee can be the agent of both the seller and the buyer in a transaction, but only with the knowledge and informed consent, in writing, of both the seller and the buyer. In such a dual agency situation the licensee will not be able to disclose all known information to either the seller or the buyer. As a dual agent, the licensee will not be able to provide the full range of fiduciary duties to the seller or the buyer. Transaction Coordinator A transaction coordinator is a licensee who is not acting as an agent of either the seller or the buyer, yet is providing services to complete a real estate transaction. The transaction coordinator is not an agent for either party and therefore owes no fiduciary duty to either party. The transactional coordinator is not the advocate of either party and therefore has no obligation to negotiate for either party. The responsibilities of the transaction coordinator typically include: • Providing access to and the showing of the property • Providing access to market information • Providing assistance in the preparation of a buy and sell agreement which reflects the terms of the parties' agreement • Presenting a buy and sell agreement and any subsequent counter-offers • Assisting all parties in undertaking all steps necessary to carry out the agreement, such as the execution of documents, the obtaining of financing, the obtaining of inspections, etc. Having said all that, here's how it works in practice: • 95%+ of the time, buyers are initially represented by agents functioning as buyer's agents • 99%+ of the time, sellers are initially represented by agents functioning as seller's agents • In situations where an agent ends up representing both buyer and seller in a single transaction, the parties usually have a discussion as to the agent's agency affiliation. What happens MOST of the time is that the agent converts to a dual agency status, which both parties must acknowledge IN WRITING Tip! Subject To - with a bit of training, you can make this method of real estate investing really pay off big. Once you know how to negotiate these deals, your real estate investing income will reach that of corporate executives - with much less of a time requirement. I hope this helps further your understanding of real estate agency. For a more detailed discussion, please visit the Professional One Real Estate website. It is imperative that you fully understand exactly who your Realtor is representing BEFORE you enter into any negotiations involving real estate. What you don't know can absolutely hurt you! Own Real Estate With No Money Down. Formula For Building Massive Wealth With No Money Down. Michael McClure is the founder of Professional One Real Estate, a brokerage located in Plymouth, Michigan. After graduating from Michigan State University with a degree in accounting, McClure worked as a Certified Public Accountant for Price Waterhouse for nearly a decade. After leaving accounting in 1991, he began selling real estate. To date, he and his partner, RE/MAX Hall of Fame Member Phyllis Lemon, have cumulative lifetime sales of approximately $500M. McClure also volunteers on the Professional Standards Committee (a self-governing body of the local association of realtors that acts in a judge-and-jury-like fashion regarding ethics complaints and arbitration disputes) of Western Wayne Oakland County Association of Realtors. He sat for and passed the State of Michigan's Associate Real Estate Broker's examination in December 1996. McClure and his team have developed one of Metro Detroit's top ranking real estate websites http://www.professionalone.com.