![]() ![]() ![]() Why do we not take a representative with us when we go to purchase a $50,000 vehicle? It's a major expense and must be paid for in the short term. Examples of this would be when a buyer has not entered into a Buyer Agency agreement with the broker and buys a property where the broker is the sub-agent of the seller's broker or where a seller chooses to work with a transaction broker. In a non-agency situation (where no written agreement nor fiduciary relationship exists), a real estate broker (and his agents) works with a principal who is then known as the broker's customer. The broker (and his/her licensed real estate agents) then becomes the agent of the principal who is the broker's client. These are then clients of the broker.Īgency relationships in a residential real estate transaction involves the legal representation by a real estate broker (on behalf of a real estate company) of the principal, whether that person or persons is a buyer or a seller. Some states also have statutes which define and control the nature of the representation. Traditionally, the broker provides a conventional full-service, commission-based brokerage relationship under a signed listing agreement with a seller or "buyer representation" agreement with a buyer, in most states thus creating under common law an agency relationship with fiduciary obligations. ![]() Agency Relationship versus Non Agency Relationship By Richard Barbee, M.Ed., GRI, CRS ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |