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Buyers
agent, sellers agent, dual agent, single agent, sub-agent, agency,
dual agency, what does it all mean, how does it work, and who
represents you?
Are
you a client, customer, or consumer?
Is
there a difference?
You
betcha! A HUGE difference!
Hopefully,
this will answer some of your questions - or at least let you know
what questions to ask of any agent you're working with to buy or
sell property.
One
thing I've noticed when I'm on the internet is how differently
agency is explained and the various statements made concerning
agency. Here are some examples:
One site
says,
"All agents represent the sellers."
(called
Sub-Agency) This
statement implies this is nationwide, not
true.
Not allowed in Illinois any more.
Another
says,
"They only represent sellers."
(called
Exclusive Sellers Agency)
Another
says,
"They only represent buyers."
(called
Exclusive Buyers Agency)
Another
says,
"They can represent buyers and sellers."
(called
Dual Agency)
Another
says,
"They represent the person they are working with - buyer
and/or seller."
(called Designated
Agency)
Another
says,
"The same agent can represent
both
the buyer and seller at the same time."
(called
Dual
Agent).
This must be in writing, from the beginning, with the written
acceptance of this type relationship between all parties -
sellers, buyers, and agent
Another
says,
"We will help the seller and buyer put the sale together,
without representing either party.
(called
Transaction Agency or No Agency Agreement).
And,
guess what! Even though they may seem to be saying exactly
the opposite from each other, they all may be accurate statements.
Hmmm....? Confused? How is this possible you may ask.
Here is some general information, if you want or need more
specifics, contact legal counsel for advice and guidance for
your area,
for your situation and even though an agent is supposed to discuss
their agency policy at first significant contact, if they don't
you need to ask
them what their policy
is for agency and who they will be representing - BEFORE you
disclose confidential information to the agent.
Agency
does have some federal laws which apply. Additionally, each
state can individually have their own laws pertaining to agency,
and some state's give the individual real estate s a choice
of which type of agency policies it will practice (as it does in
Illinois). Now does it
make some sense? To simplify - agency is controlled by the
federal government, then the state government, then it breaks down
to policy.
Based
on this information, you can have a real estate
that says:
*
we will work only
with buyers-
they exclusively practice buyers agency; and all agents are buyers
agents.
*
another that says we will work only
with sellers-
they exclusively practice sellers agency; they only take property
listings and work with sellers.
*
another that says we will offer sub-agency-
all agents represent only
the sellers
- regardless who the agent is working with, even if it's the buyer
-
by the way, sub-agency is not allowed in Illinois any
longer;
*
another can offer dual
agency
-
the has some agents who will be representing sellers and
some agents who will be representing buyers; and each individual
agent may represent sellers and the same agent may also
represent buyers; each agent represents whomever they are
working with, regardless if they are the buyer
or seller).
This seems to be the most typical setup in Illinois.
*
where an allows dual
agency,
if
an agent has a property listed for sale and that same agent is
also working with a buyer who wants to buy the property they have
listed, then with the written, informed, consent of all parties, that agent
is adual
agent
-where
the one agent represents both the seller and the buyer.
An agent will have be be neutral between all parties and cannot
reveal confidential information to either party about the other
party involved in the transaction without written permission to
do so in order to be a dual agent. An agent will be
somewhat limited by what they can do. But the agent should
present the pros and cons to you as it applies to your situation
based on what one party wants to do. Then it's your
decision to accept it, counter it, or altogether reject it.
Now,
if you want to get any deeper than this, please call your attorney
for a thorough explanation. Allow me to give you the scenario
for me and my specifically, and in accordance with Illinois
laws pertaining to agency.
Illinois
State Law
Agency
Representation
Our
Policy
As a consumer,
I have to notify you in writing at first significant contact that disclosure
of confidential information to me could create a designated agency
relationship, whether intended or not. I also have to let
you know who I
represent, if any one, at first significant contact. You will
also be asked to sign a receipt acknowledging this written
disclosure for everyone's records.
We are required by law to have this on file should we ever be
audited for compliance to the laws governing our industry.
To answer very general real estate questions, it creates nothing
more than a non-binding, lawful broker-consumer
relationship between us.
So,
if you are not ready to become my client where I would
represent you, please do not disclose confidential information
(divorce, relocation, motivation to sell and/or buy, financial
information, property specifics, price range, or anything else that could affect your negotiating
power, etc.) to
me.
Until then, I can
give you information and answer questions like: describing our
brokerage services and fees charged; give you information about
prices and locations of a properties; answering questions about a
property; set an appointment to see property.
Current (Illinois)
state law presumes the licensee represents the consumer they are
working with (buyer or seller), unless you have a written
agreement stating a different type of relationship has been
created.
If you are a seller,
I represent you as your legally designated agent, according to the
terms of our mutual listing agreement contract.
If you are a buyer,
once you begin telling me the type of property you want and I
respond by letting you know what types of properties are
available, I am no longer performing "ministerial acts"
whereby you are merely a consumer, by our actions you then become
my client.
This has chosen
to allow dual
agency, where it will
be up to the individual agent to decide if they want to work with
sellers, buyers, or both. My also allows an agent to
be a disclosed (in writing) dual
agent, where the
agent represents both the seller and the buyer in the same
transaction. When you meet with your agent the time, you'll
review your representation options and things will be clearly
explained so you can confidently make your choices.
Also, I can work with many sellers and buyers simultaneously, and
so can other agents in my . Sometimes, I and/or one of
the other agents from my may have another client interested
in buying the same property as you, and sometimes multiple offers
do occur. Each offer is presented to the seller/sellers
agent for review and their decisions are made known to the parties
involved. Everyone is treated fairly and honestly.
In all cases,
regardless who we represent, we are required to treat all parties
to a transaction fairly and honestly - subject to confidentiality
limitations, and to disclose any material defects we are
aware of to the other party. If an agent becomes aware of
the sellers or buyers inability to perform according to the
contract terms, this becomes an adverse material fact that must be
disclosed in writing to the other party. This duty of
disclosing adverse material facts overrides the duty of
confidentiality.
Some
Definitions:
Agency
- Any relationship in which one party acts for or represents
another.
Buyers
Agency - An /
agent who chooses to represent only buyers.
Sellers
Agency - An /
agent who chooses to represent only sellers.
Dual
Agency - Where an
will allow each agent to represent sellers, buyers, or
both.
Sub-Agency
(No longer allowed in Illinois) - Where an agent indirectly represents the same client as another
agent, usually the seller, even if the sub-agent is working with
the buyer, who would be considered a customer. The sub-agent
owes his loyalties and responsibilities to the client only.
Dual
Agent - An agent who
represents equally both seller and buyer in the same transaction, with the written,
informed consent of all parties.
Designated
Agent - In Illinois,
the licensee who has direct contact with the buyer or seller is
the ONLY agent considered to be the legal designated agent of that
buyer or seller, as named by the broker in accordance with
policy.
Client
- The person who is being represented by a licensee (agent),
unless there is a written agreement between the agent and the
consumer providing for a different relationship.
Customer
- A consumer who is not being represented by a licensee but for
whom the licensee is performing ministerial acts (i.e. answering
general real estate questions about properties, areas, etc.
Please note: once the customer starts detailing his/her search
criteria, price range, etc. that customer then becomes a client of
the agent. So if you do not want to create an agent/client
relationship, do not disclose specific information to the agent.)
Consumer
- A person or entity seeking or receiving real estate general brokerage
services.
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straight-forward advise and guidance.
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2021 Midwest Rd,
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60523
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