Buyer Agency Representation
When purchasing a home in New York State the licensed real estate agents are is required to disclose their agency relationship. “The New York State Disclosure Form For Buyer And Seller” explains what type of relationship you have with your real estate professional and whom they represent i.e. the seller or the buyer. Shown below are the different kinds of agency relationships. It is very important that buyers understand agency relationships so as to protect their interests through the buying process.
Buyer’s Agency (Buyer’s agent)
A buyer agent is retained by the buyer to help search for properties to purchase. A buyer’s agent must provide the following;
Through the duration of the transaction a buyer’s agent is responsible to act in the interests of the buyer. At Prudential Nutshell Realty we employ the required New York State Agency Disclosure and an “Exclusive Right to Represent/Buyer-Broker Agreement”. This agreement identifies in detail additional obligations and services of both the real estate agent and the buyer. It is an agreement by both parties to work in concert with the goal of finding the best home for the buyer.
Seller’s Agency (Seller’s agent)
A seller’s agent is hired by a seller to represent the seller in the effort to secure a buyer. A seller’s agent acts in the best interests of the seller and required to provide the following;
A seller’s agent in no way represents the interests of the buyer. When dealings with the buyer, a seller’s agent must (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.
Dual Agency (Dual agent)
Real estate agents may from time to time represent both the buyer and seller in a real estate transaction; this results in “Dual Agency”. By having to provide the full range of fiduciary responsibilities to both buyer and seller a potential conflict of interests exists. When this occurs an agent is required fully explain to both parties that Dual agency exists and is required to obtain permission of both parties in writing. When practicing Dual Agency an agent cannot provide loyalty to both parties.
Designated Agency (Designated agent)
New York State law provides the option of “Designated Agency” to help eliminate the potential conflict of interest brought about by dual agency. This permits the broker to identify a sales person to represent the seller and another sales person to represent the buyer. This provides representation for both buyer and seller without a conflict of interest. Permission must be obtained in writing from both parties.