Fellow Exclusive Buyer Agent Carla Muss Jacobs, from Portland Oregon, gives a great explanation of agency relationships and how it works.
All buyers from Massachusetts to Oregon need to understand how agency works. The listing agent represents the Seller and that means the Sellers interests come first. Even in a state like Massachusetts which allows dual agency (if dislcosed and consented to), Buyers are not doing themselves any favors by working with the listing agent. Dual agents can't not offer 100% representation to either side.
Would you use the Seller's attorney to represent you as a Buyer in the transaction? I didn't think so. You shouldn't use the Seller's real estate agent either.
If you're in the Portland, Oregon area looking to buy a home, give Carla a call. If you're in Massachusetts, contact me or one of the other exclusive buyer agents at Buyers Brokers Only LLC.
Comments have been disabled - to join the discussion go to Carla's original post linked below.
Real Estate Agency Relationships Across State Lines
For the most part, most real estate agent licensees know that the "Law" of REAL ESTATE AGENCY" varies from state-to-state.
Most consumers, customers and clients DO NOT!
Today I received a call from someone who started off with: "I'm calling about your listing . . ."
I listen for their pause, then go into DISCLOSURE about "listings running through my site are provided by the RMLS, through an IDX feed." Next, I quickly make my REAL ESTATE AGENCY disclosure: As an "Exclusive Buyers Agent," my brokerage does not take listings, and real estate representation is BUYER focused, exclusively.
Then I tell the caller about the IDX feed which runs through every single agents' site that has a website up . . . we have ALL the listings . . . and I realize they couldn't care less.
But, I'm happy to answer any questions you might have about a particular property. Can I have the MLS number, and I'll be happy to look it up for you."
The caller wanted information on a $99,000 POS (piece of shack) listing, in some area in Oregon I've never heard of, and when I saw the condition of the property -- TEAR DOWN
But before I gave him the listing agent's phone number I advised them:
The listing agent works for the Seller. They have a fiduciary duty to get the best terms, conditions and price for their client . . . the Seller"
That got me thinking . . .
Now if I was a llisting agent, I'd be a very shrewed one at that! While under Fiduciary duty to my Seller client, I would have a "game plan" set up for anyone calling who was an unrepresented buyer. I'd make sure I picked the unrepresented buyers brain clean of all information, pass it along to my client and THEN if the unrepresented buyer still wanted me to write up the offer -- CHA CHING goes the double-tip cash register -- we'd already have our game plan in place.
Under The Real Estate Agency Laws of Oregon, while under a listing agreement, I would be the Seller's Agent and the Seller's Fiduciary BEFORE I am the "Disclosed Limited Agent" -- which is what our state terms dual agency/agents.
I would NOT be violating a thing by putting the GAME PLAN in place with my Seller, getting all the information I could from an unrepresented buyer -- which is my fidicuary duty to the seller -- and then switching teams becoming a Disclosed Limited Agent
The caller was from Florida . . . figures. They don't even have dual agency. They are "transaction" brokers.
I wished him the best of luck, and then ended the conversation.
Buyers -- even those in Oregon -- have no idea what can happen to them when they're unrepresented and call the listing agent. And let me tell you, if I did practice real estate with an emphasis on LISTINGS . . . you better believe I'd have my client's best interests all buttoned up PRIOR to . . . just in case an unrepresented Buyer called.
NOTE: Empahsis on "Limited" because once buyer and seller are using the same agent, the agent's duties are no longer that of a FIDUCIARY (to either buyer / seller) and their representaion is LIMITED. How can it be any other way? Why would a Buyer (or seller) want LIMITED represenation?!?
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Buyers Agent Portland is an Exclusive Buyer Agency serving the Portland Metro real estate market since 1999.
If you’re a Buyer in the Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers.
An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.
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