Agency is one of the most important duties of a real estate agent. A licensed real estate agent has a specific, legal responsibility to his or her client; called a fiduciary duty. This simply means that the agent must act in the best interests of his/her client. A licensed real estate agent is obligated to help a buyer purchase a property while performing the following fiduciary duties:
Loyalty – Doing everything possible to gain an advantage for their client, within the law
Obedience – Promptly obey all lawful instructions from the seller or buyer that conform to the purpose of the agency relationship
Disclosure – Reveal any material defects in the property (Does not include information such as: poor school system rating, declining property values, traffic problems, etc.)
Confidentiality – Use discretion when revealing or concealing financial details
Accountability – Account for any documents or money entrusted to the agent
Care and Diligence – Prepare to competently represent the seller, through education. A good real estate agent will keep up with current market activity and assist his or her clients with contracts, negotiations, inspections, as well as the closing process.
The practice of Dual Agency occurs when the real estate agent represents the buyer AND the seller in the same transaction. There are specific rules and procedures for this practice, and both the buyer and the seller have to agree to it, in writing. The primary directive for Dual Agency is that the agent cannot tell the seller what the highest price a buyer is willing to pay, and also that the agent cannot tell the buyer the lowest price the seller is willing to sell for.
Even though the State of Illinois allows this practice, our company policy dictates that we never participate in Dual Agency. Select A Fee Real Estate represents only one party in a transaction! You are assured that you receive only the best service, council, and advice, for your situation.
You are entitled to choose your level of representation regarding your search for a property:
Exclusive Buyer Representation – This level of representation obligates you to conduct your real estate search with a designated agent. If you buy or lease a property, your agent would usually be compensated by the seller at conclusion of the transaction. But, if compensation is not paid in this manner, you would be obligated to pay the agent as specified in the agreement. In addition, if you found a property through someone other than your designated agent, you would still be obligated to compensate your contracted agent, per the Exclusive Buyer Agreement.
Non-Exclusive Buyer Representation – This level of representation allows you to conduct your real estate search with more than one agent, if desired. The agent that finds the property that you want to buy or rent would be compensated by the seller, but would represent YOU in the transaction. If you found a property on your own without the use of an agent, you would owe nothing. This level of representation is recommended because of its flexibility; giving you more options in the successful search for property.
We have included web links below, to allow you to view examples of both agreements. At the time of signing, please make sure you have thoroughly reviewed the agreement of your choice.
Exclusive Buyer Agreement
Non-Exclusive Buyer Agreement