Real Estate Brokers And Fiduciary Duty

Real estate agents and sales people are not all produced equal. The glaring difference involving the two is the difference in licensing. A broker is licensed to negotiate the sale of real property and signifies the principal (seller or buyer). The sales person works solely for the agent, representing the respective principal underneath the guidance and license of the agent. But even aside form the technical licensing issues, it’s important to realize whoms representing you.

In our article entitled, Real Estate Agents Must Have These Qualities, we all pointed out many of the characteristics of a good real estate agent. In this article, we’re showcasing the real estate broker’s legal fiduciary duties. Several real estate investors talk about “finding a great real estate agent, ” or one who knows investment properties. That’s certainly suggested within real estate investing circles, as it needs to be.

However , there’s one thing that many real estate property investors or even regular home purchasers do not take into account and that is the fiduciary responsibilities of the real estate broker. Most real estate agents generally represent sellers because that is where the majority of the money lies. Retailers own the real property and want to sell, most buyers have many hurdles to overcome and don’t own anything.

When we look at “finding a real estate agent” to locate properties, do “comps”, etc ., where do we stand, as the investor/buyer? Unless you have a Buyers Agency with the real estate broker, regardless of what they tell you or what type of information they obtain, the most important question continues to be, “where do their fiduciary responsibilities lie? ”

Let’s take that one step further and use “comps” as an example. As a broker or sales rep who represents sellers, even some other agents listings, their loyalty often remains with the sellers. If you’re working with a sales person and they’re pulling comps for you, they will present information in fact it is up to you, the investor, to make the last judgments about what to buy and not to purchase. No one is forcing you to purchase a property. So , the real estate sales person you’re working with shows you comps, but unless of course their a buyers agent, at the end of the day, they work for the seller. Here is more information regarding ขายฝาก visit our own web site.

So you question them a question like, “Can you find out there how much the sellers owe around the property? ” This sort of question is determined by the agents fiduciary responsibilities, or even it should. As a real estate sales agent, they can not lie to either party or misrepresent or hide information from either party in the transaction if it would be detrimental. However , a real auctions loyalties will certainly play a part when it comes to a question like this. If they have an agency with the seller, if the seller does not wish to have these details known to buyers, then the real estate agent will not obtain this information.

Many real estate traders will work with buyers agents, which means that a real estate broker will work straight with or will have one of his/her sales agents work with a buyer. In this case, a buyers agency means that the broker or sales agent working under the broker has a principal relationship with the customer, rather than the seller. This situation does represent some stickiness for the broker because how can a broker represent both retailers and buyers? Many brokers prevent this exact situation for this reason. Nevertheless , there are many brokers that work to signify buyers.

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