AGENCY RELATIONSHIPS Q & A’s #2820

What is an Agency Relationship? An agency relationship is the result of a mutual agreement between a real estate agent and you.

What kinds of Agency Relationships Exist ?

• Seller Agents represent only the seller. Because a seller’s agent lists and markets your home they are sometimes called listing agents. A seller’s agent is compensated by the seller.
• Buyer Agents represents only the buyer. A buyer’s agent may be compensated by the seller, the buyer or both. Most buyer’s agents are compensated by the seller however be sure you understand compensation terms before you enter a buyer agency relationship.
• Transaction Agents represents neither the buyer or the seller. Transaction agents may be compensated by either party or both.
• Dual Agents (not an option in Kansas) represent both buyers and sellers in a limited capacity. Example: An seller’s agent has a property listed you wish to buy. You elect to use the listing agent to assist you in purchasing the property. A dual agency relationship is created. Make sure your agent has informed consent of all parties in the transaction.

Laws governing agency relationships are quite different from state to state. As a prudent and informed consumer, you owe to yourself to fully understand your options.

By some accounts over 90% of the buyers in the KC Metro marketplace today use the services of a buyers agent to consummate their transactions. In the past sellers were the only party represented in a real estate transaction.

A buyer or seller's agent is by law your advocate and can only represent your interests. For example, if you call an agent whose sign is on a property, that agent represents the seller and cannot give you, the buyer, information detrimental to the seller's position. If you enter an open house where the listing agent is present, that agent is a seller's agent and cannot give you information detrimental to the seller's position. If you enter a model home in a new home subdivision, the agent present represents the seller and or developer and not the buyer. In fact in general once registered by a sellers agent in a new home area you may become a "protected" client of that seller's agent on every property in the subject area and may have difficulty obtaining the services of a buyer's advocate or agent.

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Terry Farrell Re/Max Best Associates

913-339-0615 800-391-2378

Email: tfarrell@tfarrell.com Internet: www.tfarrell.com