PRESQUE ISLE, Maine (WAGM) -A real estate transaction can have many moving parts and even more than one party involved. In fact there could be multiple parties involved beyond the buyer and seller. Shawn Cunningham examines that practice in this week’s Real Estate Matters.
You know you want to move forward with a real estate transaction and already have a realtor involved. But that may not be the only entity you seek out. There could be another party or parties involved…starting with a buyer’s agent.
Stephanie Fields Realtor, Fields Realty LLC.
” is a real estate agent or broker who helps a buyer find a home or property to purchase, while a seller’s agent is an agent or broker who helps someone sell their home or property. Typically, real estate agents offer their services for both types of transactions. When the buyer’s agent and seller’s agent complete a sale, they typically receive their payment as a commission or fee based on the price of the property sold”
Shawn Cunningham NO STANDUP
t is not uncommon for the same brokerage – or even the same individual agent – to represent both the buyer and the seller. This is known as “dual agency.”
“When a client hires a real estate agent or broker, that person is responsible for protecting the client’s interests. (For the purposes of principal-agent relationships, a real estate broker and the agents who work for that broker are effectively the same person.) So, if a broker represents both the buyer and the seller in a transaction, that broker – and the broker’s agents – have to protect the interests of both parties in the same transaction. Dual agency representation, like all real estate issues, is governed by state rules”
If a client wishes to use the services of an agent to purchase new property or sell property, they will typically enter into a contractual agreement with the agent of their choosing and the agent’s brokerage. Contracts contain multiple types of clauses. One of the most common is called an exclusive right to sell.
“f an agent has an exclusive right to sell a property, that agent (or the brokerage) receives the commission (payment) when that property sells. The agent receives payment even if the agent’s actions do not directly lead to the sale of the property.”
Then there’s another called exclusive agency…
“In an exclusive agency agreement, the agent has the exclusive right to list or market the home, but does not have the exclusive right to sell it. So, if the homeowner finds a seller independently, the agent does not earn a commission”
Overall if there are many working parts and many parties that can be involved. She says that can make a process somewhat confusing which is why its important to seek professional advice.
“seek an agent if you’re working with one agency or one agent ask about these types of clauses.”
Asking can only lead to more informed decisions on a life changing event like a real estate transaction. Shawn Cunningham, NS 8.
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