Friday, August 04, 2006

What exactly is buyers agency?

Until the last few years, real estate agents always represented the seller, not the buyer in real estate transactions. You can now have an agent specifically committed to representing you, from the initial selection of properties to mortgage approval, contract negotiations and on through the settlement process. To clarify our relationship and to protect your interests, you should have a signed agency agreement.

You will receive skilled and professional service when you select Reece & Nichols and myself to represent you in the home buying process. As Kansas City's #1 Real Estate Company, we help more than 25,000 families move each year.

We have found that buying a home may raise many questions. Let's get together to answer your questions and discuss your home buying goals and objectives. Then we can create and implement and effective action plan to find your new home.
Missouri Laws Regarding Brokerage Relationships
Missouri law allows licensees to work for hte interest of one or both parties in a transaction. It also allows the licensee to work in a neutral position. The law requires that if you want representation, you must enter into a written agreement. These agreements vary and you may also want to consider an exclusive or nonexclusive type of relationship. If you choose not to be represented by an agent, the licensee working with you may be working for the other party to the transaction.
*Prescribed by the Missouri Real Estate Commission as of January, 2005
Reece and Nichols authorizes the following types of Relationships:
Designated Agent: Acts as your specific agent, whether you are a buyer or tenant, or seller or landlord. When the broker makes this appointment, the other real estate licensees in the company do not represent you.
There are two exceptions with both resulting in dual agency:
1. The agent representing you as a buyer or tenant is also the agent who listed the property you may want to buy or lease.
2. The supervising broker of two designated agents becomes involved in the transaction.
Transaction Broker: Does not represent either party, therefore, does not advocate the interest of either party.
A Transaction Broker is responsible for performing the following:
  • Protect the confidences of both parties
  • Exercise reasonable skill and care
  • Present all written offers in a timely manner
  • Keep the parties fully informed
  • Account for all money and property received
  • Assist the parties in complying with the terms and conditions of the contract
  • Disclose to each party of the transaction any adverse material facts known by the licensee
  • Suggest that the parties obtain expert advice.

A transaction broker shall not disclose:

  • Buyer/Tenant will pay more than the purchase or lease price
  • Seller/Landlord will accept less than the asking or lease price
  • Motivating factors of the parties
  • Seller/Buyer will accept financing terms other than those offered.

A transaction broker has no duty to:

  • conduct an independent inspection of, or discover any defects in, the property for the benefit of either party
  • conduct an independent investigation of the buyer's financial condition

Disclosed Dual Agent: With the written consent of all parties, represents both the seller and the buyer or the landlord and the tenant.

A Disclosed Dual Agent may disclose any information to either party that the licensee gains that is material to the transaction.

A dual agent may not disclose information that is considered confidential, such as:

  • Buyer/Tenant will pay more than the purchase price or lease rate
  • Seller/Landlord will accept less than the asking price or lease rate
  • Either party will agree to financing terms other than those offered
  • Motivating factors for any person buying, selling or leasing the property
  • Terms of any prior offers or counter offers made by any party.

The above information is taken directly from the Missouri Broker Disclosure Form, please refer to this form for more information and types of brokerage relationships available.

No comments: