Exclusive Buyer Representation to a Real Estate Transaction
Congratulations you’ve decided to purchase a new home!
Now what?
Purchasing a home, for most people, is probably the largest financial decision they’ll ever make. A real estate transaction can be quite complicated therefor having an experienced and educated Buyers Broker, on the side of the purchaser, could make a huge difference in the overall outcome and experience of the purchase process.
Imagine for a moment the people who are selling their home through a real estate brokerage. They have entrusted an agency to represent them on the sale of their home, which again is likely to be their one single largest asset. They have relied on an understanding that the agent will be acting in their best interests at all times. This relationship is legally and ethically defined as a fiduciary responsibility. In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests.
It is quite unpractical for a seller’s agent to act in a fiduciary responsibility to two parties to a transaction. As a matter of fact many states across our nation have made it unlawful for a real estate brokerage to represent both buyer and seller in a real estate transaction. Many real estate brokerages in California have policies in place that precludes any salesperson employed by that brokerage to act in a dual capacity in a real estate transaction.
Whether you are buying or selling a home, take caution when your agent is acting for both buyer and seller.
Your thoughts?
