Buyers agent, sellers
agent, dual agent,
single agent, sub-agent,
agency, dual agency,
what does it all mean,
how does it work, and
who represents you?
Are you a client,
customer, or consumer?
Is there a difference?
You betcha! A HUGE
difference!
Hopefully, this will answer some of your questions - or at
least let you know what
questions to ask of any
agent you're working
with to buy or sell
property.
Internet sites explain
agency and make
various statements made
concerning agency. Here
are some examples:
One site says, "All agents represent the sellers."
(called Sub-Agency) This
statement implies this
is nationwide,
not true.
Not allowed in Illinois
any more.
Another says, "They only represent sellers."
(called Exclusive Sellers Agency)
Another says, "They only represent buyers."
(called Exclusive Buyers Agency)
Another says, "They
can represent buyers and sellers."
(called Dual Agency)
Another says, "They represent the person they are working
with - buyer and/or
seller."
(called Designated
Agency)
Another says, "The same agent can represent
both the
buyer and seller at the
same time."
(called Dual
Agent).
This must be in writing,
from the beginning, with
the written acceptance
of this type
relationship between all
parties - sellers,
buyers, and agent
Another says, "We will help the seller and buyer put the
sale together, without
representing either
party. (called Transaction
Agency or No Agency
Agreement).
This is why you should
read our Internet Warning!
And, guess what! Even though they may seem to be saying
exactly the opposite
from each other, they
all may be accurate
statements. Hmmm....?
Confused? How is this
possible you may ask.
Here is some general
information, if you want
or need more specifics,
contact legal counsel
for advice and guidance
for your area,
for your situation and
even though an agent is
supposed to discuss
their agency policy at
first significant
contact, if they don't---you need to ask them
what their policy
is for agency and who
they will be
representing -
BEFORE
you disclose
confidential information
to the agent.
Agency does have some federal laws which apply.
Additionally, each state
can individually have
their own laws
pertaining to agency,
and some state's give
the individual real
estate office a choice of
which type of agency
policies it will
practice (as it does in
Illinois). Now does it
make some sense? To
simplify - agency is
controlled by the
federal government, then
the state government,
then it breaks down to
the office policy where
your agent works.
Based on this information, you can have a real estate that
says:
* we will work
only with buyers
- they exclusively
practice buyers agency;
and all agents are
buyers agents.
* another that says we will work
only with sellers
- they exclusively
practice sellers agency;
they only take property
listings and work with
sellers.
* another that says we will offer
sub-agency
- all agents represent
only the sellers
- regardless who the
agent is working with,
even if it's the buyer
- and just so you know, sub-agency
is not allowed in Illinois
any longer;
* another can offer
dual agency
- some agents who
will be representing
sellers and some agents
who will be representing
buyers; each
agent represents
whomever they are
working with, regardless
if they are the buyer or
seller).
* when an office allows
dual agency,
if an agent has a
property listed for sale
and that same agent is
also working with a
buyer who wants to buy
the property they have
listed, then with the
written, informed,
consent of all parties,
that agent can be a
dual agent
-
where the one agent
will represent both the
seller and the buyer.
An agent must be
neutral between all
parties and cannot
reveal confidential
information to either
party about the other
party involved in the
transaction without
written permission. An agent will be
somewhat limited as to what
they can do.
Generally, the
agent should present the
pros and cons of your
options. Then it's
your decision which way
to proceed. The
agent takes your
response back to the
other party, then they
can accept it, counter
it, or reject it.
This goes on until there
is either full agreement
and signed or until it's
clear no agreement can
be reached between the
parties and they move
on.
In
the beginning of working
with your agent, you
should have been present
with a form to read and
sign. A disclosure
and consent form whether
or not you agree to
accept dual agency/dual
agent. You can
change your mind if you
previously agreed to
dual agent situations.
If you are a buyer and
want to buy that agents
listing, chances are
that your agent will
refer you to another
agent in their office to
help you and remain
working with the seller
as their agent.
Confidential information
you gave your agent
cannot be disclosed to
the seller.
Now, if you want to get any deeper than this, please call
your attorney for a
thorough
explanation.
Illinois State Law
Agency Representation
Our Policy
As a consumer,
any agent you meet with,
talk to, even over the
internet has to notify you in writing at first
significant contact that
disclosure of
confidential information
to them could create a
designated agency
relationship, whether
intended or not.
The agent also has to let you know who
they represent, if any one,
at first significant
contact. You will also
be asked to sign a
receipt acknowledging
this written disclosure
for everyone's records.
We are required by law
to have this on file
should we ever be
audited for compliance
to the laws governing
our industry. To answer
very general real estate
questions, it creates
nothing more than a
non-binding, lawful
broker-consumer
relationship between you
and the agent you've
interacted with.
So, if you are not ready to become
a client where
a specific agent would
represent you, do
not disclose
confidential information
(divorce, relocation,
motivation to sell
and/or buy, financial
information, property
specifics, price range,
or anything else that
could affect your
negotiating power, etc.)
to the agent.
Until then, an agent can give
you information and
answer questions like:
describing their brokerage
services and fees
charged; give you
information about prices
and locations of a
properties; answering
questions about a
property; set an
appointment to see
property.
Current (Illinois) state
law presumes the
licensee represents the
consumer they are
working with (buyer or
seller), unless you have
a written agreement
stating a different type
of relationship has been
created.
If you are a
seller,
we would represent you as your
legally designated
agent, according to the
terms of our mutual
listing agreement
contract.
If you are a
buyer,
once you begin telling
the agent the type of property
you want and they respond
by letting you know what
types of properties are
available, they are no
longer performing
"ministerial acts"
whereby you are merely a
consumer, by the actions
between
you and the agent, you
then become a
client of that agent,
entitled to all the
rights and privileges
that come with that.
1st Choice Homes Realty
has chosen
to allow dual agency,
where it will be up to
the individual agent to
decide if they want to
work with sellers,
buyers, or both.
1st Choice Homes Realty
also allows an agent to
be a disclosed (in
writing) dual agent,
where the agent can
represent both the
seller and the buyer in
the same transaction.
When you meet with your
agent the first time, eview your
representation options
and things will be
clearly explained so you
can confidently make
your choices you feel
are best for you.
Also,
1st Choice Homes Realty
agents can work with
many sellers and buyers
simultaneously. Each offer/counter
offer/rejection is
presented to the
appropriate party for
consideration in
accordance with the
clients instructions.
The clients
ecisions are made known
as soon as possible to
all appropriate parties. Everyone is
treated fairly and
honestly.
In all cases, regardless who we represent, we are required to
treat all parties to a
transaction fairly,
ethically and
honestly - subject to
confidentiality
limitations, and lawful
instructions of our
clients. We are
required to
disclose any material
defects we are aware of
to the other party. If
an agent becomes aware
of the sellers or buyers
inability to perform
according to the
contract terms, this
becomes an adverse
material fact that must
be disclosed in writing
to the other party.
This duty of disclosing
adverse material facts
overrides the duty of
confidentiality.
Some Definitions:
Agency - Any relationship in which one party acts for or represents
another.
Buyers Agency - An / agent who chooses to represent only buyers.
Sellers Agency - An / agent who chooses to represent only sellers.
Dual Agency - Where an will allow each agent to represent sellers,
buyers, or both.
Sub-Agency (No longer allowed in Illinois)
- Where an agent
indirectly represents
the same client as
another agent, usually
the seller, even if the
sub-agent is working
with the buyer, who
would be considered a
customer. The sub-agent
owes his loyalties and
responsibilities to the
client only.
Dual Agent - An agent who represents equally both seller and buyer in
the same transaction,
with the written,
informed consent of all
parties.
Designated Agent - In Illinois, the licensee who has direct contact
with the buyer or seller
is the ONLY agent
considered to be the
legal designated agent
of that buyer or seller,
as named by the broker
in accordance with
policy.
Client - The person who is being represented by a licensee (agent),
unless there is a
written agreement
between the agent and
the consumer providing
for a different
relationship.
Customer - A consumer who is not being represented by a licensee but
for whom the licensee is
performing ministerial
acts (i.e. answering
general real estate
questions about
properties, areas, etc.
Please note: once the
customer starts
detailing his/her search
criteria, price range,
etc. that customer then
becomes a client of the
agent. So if you do not
want to create an
agent/client
relationship, do not
disclose specific
information to the
agent.)
Consumer - A person or entity seeking or receiving real estate
general brokerage
services.
