Real Estate Representation Options

Introduction

• Purpose: Ensure understanding of options before making decisions.
• Discussed the Consumer Relationships Guide.

Types of Relationships

1. Common Law Agency

• Brokerage acts as your agent.
• Entire brokerage represents you.

2. Designated Agency

• A specific real estate professional acts as your sole agent.
• Representing only your best interests.
• Responsibilities include:
  • Undivided Loyalty: Best interests come first.
  • Confidentiality: Information remains confidential.
  • Full Disclosure: Provide relevant information affecting decisions.
  • Obedience: Follow lawful and reasonable instructions.
  • Reasonable Care and Skill: Use expertise to find and secure properties.
  • Full Accounting: Keep accurate records of funds/documents.

3. Customer Relationship

• Limited services, cannot offer advice or negotiate.
• Can assist with paperwork and general information.

Conflict of Interest

• Situations where the team represents both buyer and seller.
• Options include:
  • Choose a different agent.
  • Remain a client with another agent for the seller.
  • Switch to a customer relationship.
  • Act as a transaction facilitator.
• Disclosure of conflicts and guidance on options.

Review of Relationship Options

• Common law agent: Entire brokerage represents you.
• Designated agent: Individual agent represents you.
• Customer: Assistance but not full representation.
• Conflict of interest disclosure.

Exclusive Buyer Representation Agreement

Clauses

• Clause 1: Defines property type, preferred neighborhoods, requirements.
• Clause 2: Agency relationship; exclusive right to assist and commitment.
• Clause 3: Brokerage responsibilities in supervising and handling transactions.
• Clause 4: Agent responsibilities include finding properties and negotiating.
• Clause 5: Additional support like connecting with professionals and market insights.
• Clause 6: Client responsibilities to inform changes and interactions.
• Clause 7: Conflict of interest handling.
• Clause 8: Standard fee structure, typically paid by the seller.
• Clause 9: Consent for personal information use related to the transaction.
• Clause 11: Be mindful of security during home viewings.
• Clause 12: Indemnify brokerage against claims.
• Clause 14: Agreement termination conditions.
• Clause 16: Confirmation of understanding and willingness to proceed.

Conclusion

• Signing confirms understanding and readiness to proceed.
• Emphasized trust and excitement in working together.