Sunday, July 6, 2008

Lake Norman Real Estate: Agency Relationships

Agency Relationships in Real Estate

EVERY time an agent represents you, they should first explain to you all the Agency Relationship options and make you aware of what each entails. In North Carolina they should also supply and review the "Working with Real Estate Agents Brochure" and make sure you understand all of the representation options. This is a MUST when it comes to Real Estate in North Carolina. If your agent has not completed this with you, it may be good to find another agent that will take the time to review this information. Below is a brief summary on the different types of agency relationships.

Single Agency
In single agency, the firm/broker exclusively represents either the buyer or the seller in a transaction. The agent represents one client, and any third party is a customer.

Buyer Agency
When a buyer contracts a firm/broker to locate property and represents that buyers interest in the transaction, the buyer is the principal, also knows as the buyer's client. The broker as an agent, is strictly accountable to the buyer and the seller is a third party.

Dual Agency
In dual agency, the broker/firm represent the buyer and the seller in the same transaction. This requires the agent to be equally loyal to two seperate principals at the same time. The challenge to the agent, is to fulfill the fidiciary duties to either principal without compromising the other.

Designated Dual Agency
Also known as designated agency, involves appointing one or more licensees of a firm to represent the seller and appointing another licensee of the same firm to represent the buyer in the same real estate transaction.

These are just the basics of the different agency relationships. Make sure the agent you use explains all of these in detail so you can make sure you are being represented the way you should.

See also:
Charlotte/Lake Norman Information Links
Fiduciary Duties of an Agent
First time homebuyers
Why I need an agent to purchase/sell a home
Tips for selling your home

Contact your Lake Norman Real Estate Expert for more information on this post.

Jeremy Adair
Real Living - Davidson, NC
Cell: 704.315.8106
Fax: 704.892.9766

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