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Do You Really Understand Agency in Real Estate Dual Agency, No Agency, Buyer Agency.
When an offer to purchase real estate is written on your behalf, real estate law requires that all parties acknowledge how you are being represented…
You have three types of Agency that you can choose from, BEWARE, there are some pitfalls.
DUAL AGENCY: Working with a Seller’s Agent. In Real Estate law, the realtor must not advise the buyer or seller regarding any price to use in an offer or counter offer. In a Dual Agency transaction, the Courts see this as the Realtor not representing either party, only to obtain a commission for themselves.
All realtors must act impartially and not discuss the motivation of either party. Hmmmm?
All parties must consent to limited dual agency in writing, prior to making an offer. Hmmmm?
Buyer Beware: Not all Realtors are alike. A financial concession may be offered to you. This may appear as though you are saving money, when in fact you agree in a counter offer to pay the price that the seller has determined. Clever but you pay the seller’s price.
NO AGENCY: Is now called a Customer Relationship Working with a Seller’s Agent in New Construction and Resale Homes. You actually have no representation whatsoever, which means you are totally on your own. You are essentially representing your self, while the seller has a professional on their side. The Agent’s legal duty of disclosure is limited to statements provided by the Seller, plus details of latent defects only. The Agent is obligated to tell the seller all your conversations and all the information you tell the agent.
The Seller often laughs all the way to the bank.
Even expensive lawyers and accounts could not help you. Run Away Faster: This is Undivided Loyalty to the seller .
Buyer Agency: Protect your own best interest only. Demand an ethical Realtor that you can trust.
Don’t hire a realtor just because you think they’re nice. Receive detailed explanations on how to ensure an enforceable offer to purchase is weighted in your interests only. Receive thorough research on all available properties, plus recent sold reports for all similar homes. -Receive current information on changes to real estate law.
In this new world of technology, Home Buyers feel extremely empowered, since they have such greater access to information.
Buyers feel stronger in their decision making than ever before. It is true there is more access, but the information is not complete without full and proper research to ensure the best price, the best terms and the best conditions in any offer for property. A Buyer Agent is totally responsible for you.
To attempt such a major purchase using personal resources only, can be dangerous to your wealth.
You will find the best solutions through a solid relationship with a long term professional.
*** In any Real Estate transaction, make certain that you use contract documents that are approved by the Real Estate Council of B.C. The RECBC is a provincial agency set up to enforce legislation and protect the public; the RECBC drafts and approves legal documents that realtors use in property transactions to ensure full disclosure and to see that everyone is treated correctly.