THERE ARE BASICALLY 3 TYPES OF REAL ESTATE BROKERAGE RELATIONSHIPS (PART 2)
Transaction brokerage arrangements are usually best suited for consumers who are primarily interested in the marketing services and expertise that can be provided by real estate professionals, but who do not need an agent to represent them in the negotiations for the sale or purchase of real estate. Remember, if you do not sign a brokerage agreement, by law, the licensee (salesperson/agent) will be considered a transaction broker.
A Limited Consensual Dual Agent is a licensee (salesperson/agent) for both the buyer and seller. This may only be done with the written, informed consent of all parties. This type of agent must also be loyal and faithful to the client, except where the duties owed to the client’s conflict with one another. The dual agent must avoid showing favoritism to either party or refrain from revealing confidential information that could prove damaging to one side or the other.
Alabama law requires the following obligations on all real estate licensees to all parties, no matter what their relationship. To provide services honestly and in good faith; to exercise reasonable care and skill; to keep confidential any information gained in confidence, unless disclosure is required by law or duty to a client, the information becomes public knowledge, or disclosure is authorized in writing; present all written offers promptly to the seller; answer your questions completely and accurately.
For example, if you have your house listed for sale with Company X and Company X also brings a purchase contract to you. Who do they represent you as the seller or the buyer? Who is going to give you advice on a counter offer or to accept this offer? Remember, the agent already knows confidential information such as the mortgage balance and what amount of money you would like to make off the sell. The agent should only represent one party in the negotiations.
Ask your real estate licensee (salesperson/agent) to clarify and explain anything that you do not fully understand before signing a contract for real estate brokerage services. And ask them how they plan to represent you.