About Buyer Agents
It's all about the law of Agency...
What is an Agent? An agent is someone who is legally authorized to act on behalf of another.
What is an Agency relationship? All true agency relationships are fiduciary relationships. This means the relationship involves trust and confidence. The agent is obligated to act in the best interests of the client because the agent's actions create legal obligations for the client. The agency relationship allows an agent to work on behalf of the client - as if the client were present and acting in person.
Understanding REAL ESTATE Agency... All Real Estate licensees (sales agents) have an AGENT relationship with their BROKER. The Broker of the brokerage owns all listings, pays the licensees commissions and is the manager of the brokerage
Ninety six percent of all Real Estate Brokerages have contractual obligations with Sellers in the form of listing contracts. The brokerage's task is to sell property listings as quickly as possible for the highest price possible. If you are a seller this is what you want.
Dual Agency is a general term used when a real estate Brokerage works with BOTH Buyers and Sellers. The term is however misleading. It suggests an AGENCY relationship is provided when in reality a "Transaction Broker" or limited relationship is provided. Most full service brokerages in the US utilize some form or dual agency or transaction brokerage because they have property listings and find Buyers for these property listings.
Transaction Broker Represents the interest of the Broker. There is no Agent, Agency or Client representation for the customer. Transaction Brokers are SALES FACILATATORS. They can NOT tell you the Seller will accept a lower offer it they know it.
With Limited Agency the Licensee represents both seller and buyer in the same transaction. A Limited Agent can represent both seller and buyer but only in a "limited" capacity since the agent cannot provide to both parties undivided loyalty, full confidentiality and full disclosure of all information known to the agent (fiduciary duties).... Single Agency can provide full Agency/Agent representation as long as the BROKERAGE does NOT have an interest in the subject property.
Designated Agency is where the Broker of the brokerage will appoint a Licensee to represent the Buyer. The practice was invented and promoted by larger firms to make it possible, in theory, to handle the entire transaction in house without creating a conflict of interest. It is also more lucrative for the brokerage.