First, let us explore the difference between Sub-Agency and Buyer's Agency
t the initial interview with a real estate brokerage company, the potential buyer of real estate should decide what kind of legal relationship the buyer will have with the real estate brokerage company.
Because all real estate brokerage companies are subject to the Common Law of Agency, the information in this page pertains to every real estate brokerage company. A buyer and a real estate brokerage company must agree on a legal relationship before real estate needs or financial information are discussed. The legal relationship determines whether you will receive client level services or customer level services.
You, the buyer, have the right to be represented by a real estate brokerage company.
(a.k.a. client-level service)
If a real estate brokerage company represents the buyer in a transaction and not the seller, the buyer will be the client and the seller will be the customer of the buyer's brokerage company. To obtain representation, the buyer and the brokerage company (Dager & Dager) will enter into a Buyer Representation Agreement. The brokerage company will then be legally obligated to provide the buyer with the following fiduciary duties:
- undivided loyalty
- reasonable care
- full disclosure
- obedience
- confidentiality
- & accountability
You may also elect not to be represented. The real estate brokerage company may then represent the seller.
(a.k.a. customer-level service)
If a real estate brokerage company represents the seller in a transaction and not the buyer, the seller will be the client and the buyer will be the customer of the seller's brokerage company. When a brokerage company represents a seller, the brokerage company will be legally obligated to provide the seller with the fiduciary duties of:
- undivided loyalty
- reasonable care
- full disclosure
- obedience
- confidentiality
- & accountability
If you choose to be represented by a brokerage company...
you should know that you may be liable for the misconduct or misrepresentations of any agent or subagent while they are acting on your behalf. This is why choosing a brokerage with the highest ethical standards, like Dager & Dager, is extremely important. This agreement will generally entitle the brokerage company to receive a fee for their representation if you purchase a property during the term of the contract, HOWEVER, YOU MAY OR MAY NOT HAVE TO PAY THE BROKERAGE COMPANY'S FEE.
There are several ways for the buyer to avoid paying the fee to the buyer's brokerage company.
- To induce buyers to view their property, many sellers will voluntarily agree to pay all or a portion of the buyer's agent's fee on behalf of the buyer. If the property is listed with the brokerage company, this can be accomplished at no additional expense to the seller.
- A buyer may make an offer to the seller which is contingent on the seller paying the buyer's agent's fee.
- The buyer may pay the buyer's agent's fee and reduce the offer to the seller by the amount of the buyer's agent's fee.
- The buyer may simply refuse to purchase the property.
You, the buyer, make all the decisions. You are in control when you use a buyer's agent!
If you feel that you need more information concerning "Buyer's Agency" or if you are ready for a Dager & Dager representative to help you purchase a home using the ideas outlined above, please click on the "Buyer's Agent Info Form" button below:
