Don't Be in the Dark.......Do You Know Who Your Realtor® Works For? Part II of II
Do You Know Who Your
Realtor® Works For?
If you missed Part I of II
you can easily check out that blog post, Do You Know Who Your Realtor® Works For? Part I of II
In it I explained the two most common forms of Agency in North
Carolina: Buyers Agency and Sellers Agency. Definitely
worth a read!
There are two additional types of Agency
in North Carolina which can and often do leave many home
buyers and home sellers 
scratching
their heads in confusion. Here they are with, hopefully, simple
explanations to help you with the answer when you are asked, "Do You Know Who Your
Realtor® Works For?"
Dual Agency:
Dual Agency occurs most often when a broker has a
buyer for one of his own listings. With prior approval from the home
seller the broker is permitted to represent BOTH the buyer and
the seller in the SAME transaction.
Well,
but, wait a minute, Leesa! In the first post, Do You Know Who Your Realtor® Works For? Part I of II,
you said that a broker has Fiduciary Duties
to their principal so how, then, can the broker represent both
parties? I can only answer with the definition from the N.C.
Real Estate Commission which is:
"It may
be difficult for a Dual Agent to advance the interests of both the
Buyer and Seller. Nevertheless, a Dual Agent must treat buyers and
sellers fairly and equally. Although the Dual Agent owes them the same
duties, buyers and sellers can prohibit Dual Agents from divulging
certain confidential information about them to the other party".....
"If you choose the Dual Agency option, remember that since the agent's
loyalty is divided between parties with competing interests, it is
especially important that you have a clear understanding of what your
relationship is with the Dual Agent and what the Dual Agent will be
doing for you in the transaction."
Does that give you
cause for pause? There is one final option that will let both buyers
and sellers breathe a little easier when faced with Dual Agency
and it's called Designated Agency.
Designated Agency:
So, let's assume that a broker has a buyer for one of his own listings
as in the case above in Dual Agency. If the broker's
firm offer Designated Agency then another agent in
the firm can be "designated" to represent the buyer (or seller). This
option then allows the Agents involved to represent the principals more
fully. Please keep in mind, not all firms offer
Designated Agency so that is certainly one question that you will want
to ask your agent before signing a listing agreement or a Buyer's
Agency Agreement.
And,
if you need a refresher from the first post, Do You Know Who Your Realtor® Works For? Part
I of II, here the Fiduciary Duties once
again! Don't worry, I won't be testing you but I do want to be sure
you are as informed as you can be!
- Loyalty and Obedience
- (follow your lawful instructions and promote your best interests)
- Accounting -
(account for all monies they handle for you)
- Disclosure of
Information - (provide you with all material facts which may
influence your decision)
- Skill, Care, and
Diligence
- Confidentiality
As I always
sign off my posts.....If you have any questions you can ALWAYS feel
free to call me at 919-649-6128
begin_of_the_skype_highlighting 919-649-6128 end_of_the_skype_highlighting or
simply send me an email - it's just that easy!
