AGENCY RELATIONSHIPS IN A REAL ESTATE TRANSACTION

WHAT ARE THE OPTIONS CUSTOMER/FACILITATOR SELLER - REPRESENTED BY A SELLERS BROKER - AGENT BUYER - REPRESENTED BY A BUYERS BROKER - AGENT DUAL AGENCY – SAME BROKER, BOTH PARTIES

WHY HIRE AN AGENT? REPRESENT YOUR BEST INTEREST KNOWLEDGE OF THE MARKET KNOWLEDGE OF THE LAW ABILITY TO NEGOTIATE ABILITY TO COMMUNICATE/COOPERATE WITH COLLEGUES YOUR REQUIREMENTS!

WHAT DOES AGENCY REALLY MEAN? AN AGENT IS AN INDIVIDUAL WHO REPRESENTS THE PRINCIPAL WITH THIRD PARTIES. AGENT THIRD PARTY PRINCIPAL

WHAT ARE THE FIDUCIARY DUTIES OF AN AGENT? LOYALTY OBEDIENCE DISCLOSURE CONFIDENTIALITY REASONABLE CARE ACCOUNTING

WHAT DOES MINNESOTA LAW REQUIRE EARLY DISCUSSION WITH CONSUMERS WHO DOES THE REALTOR REPRESENT THE RIGHTS OF THE CONSUMER THE RESPONSIBILITIES OF THE CONSUMER ACKNOWLEDGE RECEIPT OF THE “AGENCY RELATIONSHIP FORM”

UNTIL THE BUYER MAKES A CHOICE ON REPRESENTATION, THE BUYER WILL BE TREATED AS A “CUSTOMER” VERY SIMILAR TO BUYING A CAR, AN APPLIANCE OR A PAIR OF SOCKS AT J C PENNY’S

HOW SHOULD THE “SELLERS BROKER” ACT? SELLERS BROKER LISTS THE PROPERTY ACTS ON BEHALF OF THE SELLER OWES FIDUCIARY DUTIES TO THE SELLER ONLY

WHAT ARE THE FIDUCIARY DUTIES OF A SELLERS AGENT? LOYALTY OBEDIENCE DISCLOSURE CONFIDENTIALITY REASONABLE CARE ACCOUNTING

ADDITIONAL RESPONSIBILITIES MUST DISCLOSE TO THE BUYER ANY AND ALL MATERIAL FACTS THAT COULD AFFECT THE BUYER’S ENJOYMENT OF THE PROPERTY THAT THE AGENT AND/OR SELLER HAS KNOWLEDGE OF.

IF THE BUYER IS NOT REPRESENTED! SELLERS BROKER MUST TELL THE SELLER ALL INFORMATION THE BUYER MAY HAVE TOLD THE AGENT. . . THE AGENT IS WORKING FOR THE SELLER! BUYER WILL RECEIVE NO ADVICE OR COUNSEL FROM THE SELLERS BROKER/SALESPERSON

HOW SHOULD THE BUYERS BROKER ACT? A BUYER MAY ENTER INTO AN AGREEMENT TO HAVE A BROKER/SALESPERSON REPRESENT THE BUYER AND ACT ON THE BUYERS BEHALF. WHO PAYS THE BROKER IS NOT AN ISSUE OF AGENCY! SAME FIDUCIARY DUTIES AND OWES THESE DUTIES TO THE BUYER ONLY!

BUYER MAY SIGN AGREEMENT FOR REPRESENTATION CONTRACT FOR EXCLUSIVE RIGHT TO REPRESENT THE BUYER CONTRACT FOR NON-EXCLUSIVE RIGHT TO REPRESENT THE BUYER NON-EXCLUSIVE MEANS YOU CAN HIRE SEVERAL BROKER/AGENTS TO WORK FOR YOU AT THE SAME TIME NEITHER ONE ALLOWS YOU TO BUY A FSBO WITHOUT COMPENSATION

WHAT ARE THE FIDUCIARY DUTIES OF A BUYERS AGENT? LOYALTY OBEDIENCE DISCLOSURE CONFIDENTIALITY REASONABLE CARE ACCOUNTING

WHAT IS A DUAL AGENT “REPRESENTS” BOTH SIDES IN A REAL ESTATE TRANSACTION REQUIRES INFORMED CONSENT OF BOTH BUYERS AND SELLERS ROLE OF “DUAL AGENT” LIMITS THE LEVEL OF REPRESENTATION TO BOTH PARTIES. MAY NOT ADVOCATE FOR EITHER SIDE

NEITHER THE BUYER OR SELLER SHOULD DISCLOSE “CONFIDENTIAL” INFORMATION TO THE “DUAL AGENT” LIMITS THE WORDS AN AGENT MAY USE TO THE FOLLOWING: WOULD YOU LIKE TO ACCEPT, REJECT, OR COUNTEROFFER. DUAL AGENCY CREATED BY THE LEGISLATURE! ! !

DUAL AGENCY PITFALL! . Dual agency is really no agency at all. Although most people contract with a real estate agent for their expertise and assistance, a dual agent must legally withhold his or her expertise and assistance to a large extent because the agent is actually representing two competing sides of a transaction at one time (the buyer and the seller) and is not supposed to promote the interests of one party to the detriment of the other.

FACILITATOR FACILITATES THE TRANSACTION NO REPRESENTATION TO EITHER BUYERS OR SELLERS NO FIDUCIARY DUTIES TO EITHER PARTY, EXCEPT CONFIDENTIALITY MUST NOT VIOLATE THE STATE LAW - DISCLOSURE.

REALITY BUYERS MAYBE SHOULD HAVE THEIR OWN AGENT SELLERS MAYBE SHOULD HAVE THEIR OWN AGENT DUAL AGENCY MAYBE SHOULD BE AVOIDED BEING TREATED AS A CUSTOMER MAYBE IS BETTER THAN DUAL AGENCY-AT LEAST YOU KNOW WHERE YOU STAND!

SUMMARY BUYING AND SELLING REAL ESTATE IS NOT SIMPLE REALTORS ARE MORE CONSCIOUS OF THEIR CLIENTS AND FIDUCIARY RESPONSIBILITIES THAN EVER BEFORE BUYERS AND SELLERS MUST UNDERSTAND THEIR RIGHTS, RESPONSIBILITIES AND OPTIONS

THE END JIM MINER, REALTOR