25 Who are You Representing?

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Agency Relationship for Buyers and Sellers

Who are you representing in a transaction? I'm going to talk about Agency Representation for your Clients. Now if you are primarily a transaction broker then this episode is not for you----

Let's look at what is stated in the Contract (Colorado) for Buyer Agency and Seller's Agent---

Buyer Agency

6. ADDITIONAL DUTIES OF BUYER'S AGENT. If the Buyer Agency box at the top of page 1 is checked, Broker is Buyer's Agent, with the following additional duties:
6.1. Promoting the interests of Buyer with the utmost good faith, loyalty and fidelity;
6.2. Seeking a price and terms that are acceptable to Buyer; and
6.3. Counseling Buyer as to any material benefits or risks of a transaction that are actually known by Broker.

Seller’s Agent

6. ADDITIONAL DUTIES OF SELLER'S AGENT. If the Seller Agency box at the top of page 1 is checked, Broker is Seller's Agent, with the following additional duties:
6.1. Promoting the interests of Seller with the utmost good faith, loyalty and fidelity;
6.2. Seeking a price and terms that are set forth in this Seller Listing Contract; and
6.3. Counseling Seller as to any material benefits or risks of a transaction that are actually known by Broker.

Promoting the interests of (Buyer and Seller) with the utmost good faith, loyalty and fidelity;

Definitions:

Good Faith = Honesty or sincerity of intention

Loyalty = A strong feeling of support or allegiance

Fidelity = Quality of faithfulness, loyalty

“Promoting the interests of (Buyer/Seller) with the utmost good faith, loyalty and fidelity;

Question: How many Real Estate Agents do this consistently?

Some Agents will do whatever they can to protect the transaction rather than looking out for the best interests of Buyer/Seller. They will take the path of least resistance in order to keep the deal in place rather than protecting their clients in an agency relationship.

Classic struggle—getting paid vs. promoting interests of Buyer/Seller.

Tug of War

Offer Amount

Listing Price

Inspections

 

My Best Advice:

Let Buyer or Seller Make Choice/Decision

Advise Them on Pro’s/Con’s

Remove Yourself from Decision Emotionally
(you are not a part of the transaction, remember that!)