|
The following is for informational purposes for you a prospective buyer of real estate in the state of
Kentucky. Before any licensed agent shows a prospective buyer any listing, the agent is expected to
disclose who the agent represents. The prospective buyer, may, in turn request buyer's agency which
is in the best interest of the buyer. It is the intent of Colwell Realty Professionals, Realtors, to
treat all parties involved in a real estate transaction honestly, fairly and justly, thus the reason
for posting this form created by the Kentucky Real Estate Commission. If an agent in the state of
Kentucky does not produce this form upon the first substantial contact with the prospective buyer,
the agent is breaking the rules. Please take time to familiarize yourself with this form and contact
us should you have any questions concerning its content. Thank you for your time and we look forward
to doing business with you soon.
|
Agency Information for Consumers Bulletin
Approved by Kentucky Real Estate Commission
Parties to real estate negotiations and sales agreements are either "clients" or "customers" of
real estate licensees.
"Clients" are persons represented by agents. Agents owe clients certain duties. These duties
include negotiation for client's best interests, informing the client of all known material facts,
and to maintain confidential information. Consumers attain client status typically by written
agreement. The most common such agreement is a listing agreement in which a consumer signs a
contract with a real estate company to sell his or her house.
"Customers" are persons who use the services of real estate licensees but are not clients of
the licensee. Real estate licensees owe lesser duties to a customer than to a client.
Licensees are required to deal honestly and fairly with customers.
The fact that a person is paying a fee to a real estate Broker does not make that person a client.
Seller's Agent
If you are entering a listing contract to sell real estate, you are the client of the listing
agent's company. The listing broker and all his salespeople represent and owe primary allegiance to
the Seller. Their fiduciary duties of loyalty and faithfulness are owed to their client, the Seller.
AS Sellers' agents they do not negotiate on a Buyer's behalf.
Some Sellers' agents will solicit the cooperation of other brokers to represent their client, the Seller,
in marketing and sale of the property. Even though these licensees are not agents of the listing company,
they would become a sub-agent of the Sellers' agent and owe the same fiduciary duties of loyalty and
faithfulness to their client, the Seller, as a Seller's agent. In this situation the Buyer would have a
customer status.
Buyers's Agent
A Broker can, at the buyer's request, agree to act as an agent for the Buyer only. In these situations,
the agent is not the Seller's agent even if by agreement the agent may receive compensation for services
rendered, either in full or in part from the Seller.
If you choose to be represented by your real estate agent in the prospective real estate transaction and
acknowledge that the agent you are working with is your agent and not an agent of the Seller, then you
will have a client status.
Dual-Limited Agent
(Agent Representing Both Buyer and Seller)
A real estate agent can legally be the agent of both the Seller, and the Buyer in a transaction, but
only with the knowledge and consent of both the Seller and the Buyer. In a dual-limited agency situation,
the agent has the fiduciary duties of utmost care, integrity, honesty and loyalty in dealings with the
Seller and the Buyer. The agent will also have the duty to disclose all fact know to the agent
materially affecting the property that are not know within the diligent attentions and observation of
the parties. The duties of honest and fair dealing in good faith shall be due both parties.
An example in representing both Seller and Buyer, the agent shall not, without express permission of
Seller, disclose to Buyer that the Seller is willing to sell the property at a price that is less than
the listing price, and likewise, the agent shall not, without the express permission of the Buyer,
disclose to the Seller that the Buyer will pay a price that is greater than the price offered.
Designated Agency
If both Buyer and Seller consent, the broker responsible for a real estate office may designate agents to
represent the Buyer the Seller to the exclusion of all other agents associated with his office. The
Seller will become the client of the agent designated to represent him and the Buyer will become the
client of the agent designated to represent him. Designated agency allows two licensees in the same
firm to represent different parties to a real estate transaction without dual agency occurring.
Consent of the client is always needed to create a designated agency.
Transaction Broker
A transaction broker, acting through one or more sales associates, assists the parties to a
potential real estate transaction as a real estate broker in communication, interposition and
negotiations, to reach agreement between or among them, without acting as agent for any party.
A transaction broker will treat both Buyer and Seller as customers. An example of a transaction
broker is when you, the Buyer, are a customer of the real estate licensee assisting you. The
licensee assisting you has no agency relationship with the Seller of the property in which you
are interested. The licensee would be a transaction broker and not as an agent for either party.
|
|