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Types of Murrieta Real Estate Agencies

Throughout the history of buying and selling real estate, the real estate agent's primary loyalty traditionally has been to the seller of the property. This was the case whether the agent was representing the seller or working with the buyer, and was often confusing to buyers who assumed that the agent who was showing them carefully selected homes was representing them. In truth, the agent was representing the owners of the homes the buyers saw and was obligated to tell the owners any information he or she discovered about the buyers.

In today's real estate industry, this type of relationship has changed. Instead, there are four types of real estate agents:

• listing agent
• seller's agent
• buyer's agent
• dual agent

The listing agent handles the listing of real property for sale. This person may or may not be involved in the actual selling of a home. The selling agent represents and conducts business on behalf of the seller; he or she seeks to obtain the best and/or highest price for the home in the shortest period of time. The buyer's agent provides services for the benefit of the buyer. The dual agent is an agent–or two agents–who works for the same broker and represents both the buyer and the seller in the transaction. A dual agent must disclose this relationship to both the seller and the buyer; he or she must not reveal privileged information–for example, the price that the seller will accept or that a buyer will pay–to either party without permission.

Seller's Agent

The seller's agent is an agent working for the firm that has the seller's listing. Unless otherwise stipulated, this is still the default situation. You should assume that any agent is a seller's agent unless you have signed a contract that changes the agent's status. In most states, a real estate agent is required to disclose which party he or she represents at the first contact with the buyer.

The seller's agent's loyalty is always to the seller. Therefore, you should not reveal any confidential information to the agent, such as the maximum amount of money you are willing to spend on a home. At the same time, the seller's agent cannot disclose personal information about the seller to the buyer, including the fact that the home is in foreclosure.

Furthermore, a seller's agent cannot reveal anything that may be detrimental to the seller or give the buyer an advantage, including the results of a comparable market analysis (CMA) of the prices that similar properties in an area have sold for during the past couple of months.

Nevertheless, a seller's agent can help you find a home and may provide some of the same services as a buyer's agent, including monitoring the process to its completion. However, a seller's agent has a responsibility to negotiate the best deal for the seller, so always assume that any information you give to the agent will be passed along to the buyer. It is important that you never forget that the agent is working for the seller and not for you.

Buyer's Agent

A buyer's agent signs a contract to represent the buyer in a home search and sales transaction. The buyer's agent is loyal to the buyer and should not reveal confidential information about the buyer to the seller or the seller's agent. On the other hand, a buyer's agent can reveal information about the seller to the buyer. For example, the agent may know the seller's reasons for selling, the seller's potential concessions and other facts that may be used to the buyer's advantage.

A buyer's agent will be knowledgeable about homes, neighborhoods, schools and other facts you may want to know. The agent also will handle the financial and legal details of the transaction through the closing. This includes recommending contract contingency clauses to protect your interests. The agent also can develop a CMA of selling prices in the area and will have other inside information. If you have done some preliminary homework on the Internet, you will be better equipped to evaluate what he or she tells you.

Having a spokesperson on your side can be crucial to your success in buying the right home. Remember, however, that a buyer's agent's contract is binding; you must understand all of its clauses before signing it.

You can sign either an exclusive contract or a nonexclusive contract with a buyer's agent. An exclusive contract commits you to using only one agent. In some cases, you may have to pay the agent a commission even if you switch to another agent.

A nonexclusive contact allows you to use multiple buyer agents without changing standard contracts, but some agents refuse to work under this condition.

Whichever contract you choose, the agreement should be in writing and should stipulate the expectations of both the buyer and the agent. The agreement may be open-ended or limited to a specific geographical area, and it should cover a specific time period that is agreeable to both parties. Many experts think that a buyer should not sign an exclusive contract for an agent's representation for longer than 30 days. The buyer's agreement also should address the agent's compensation. (See Understanding Real Estate Commissions in this chapter.)

Dual Agent

A dual agent is a real estate agent who has signed a buyer agency agreement with a buyer who wants to purchase a listing held by the agent's firm. A dual agent is required to be loyal to both the seller and the buyer, so if you find yourself using a dual agent, you should be clear about what you can expect as a buyer.

This situation must be disclosed to both the buyer and the seller, and privileged information cannot be revealed to one party without permission of the other party. In fact, dual agency usually must be agreed to in writing by all parties involved. Because dual agency regulations differ among states, check your state's real estate laws before entering into this type of agreement

If you need any information on Murrieta Real Estate or Property please check our Murrieta Homes section on this website or contact us at any time.