You have choices when selecting representation in a real estate transaction in Albuquerque. Here are five tips for understanding which type of legal relationship with a real estate professional, called an agency relationship, will best protect you when you buy or sell a home.
Buyer’s Agency
When you’re buying a home in Albuquerque, you can hire an agent who represents only you, called an exclusive buyer’s representative or agent. A buyer’s agent works in your best interest and owes you a fiduciary duty. You can pay your buyer’s agent yourself, or ask the seller, or the seller’s agent, to pay your agent a share of their sales commission.
If you’re selling your home in Albuquerque and hiring an agent to list it exclusively, you’ve hired a selling representative – an agent who owes fiduciary duties to you. Typically, you pay a selling agent a commission at closing. Selling agents usually offer or agree to pay a portion of their sales commission to the buyer’s agent. If your seller’s agent brings in a buyer, your agent keeps the entire commission.
Disclosed Dual Agency
Agents and companies can represent both parties in a home sale as long as that relationship is fully disclosed. It’s called disclosed dual agency. Because dual agents represent both parties, they can’t be protective of and loyal to only you. Dual agents don’t owe all the traditional fiduciary duties to clients. Instead, they owe limited fiduciary duties to each party.
Why would you agree to dual agency? Suppose you want to buy a house that’s listed for sale by the same real estate brokerage where your buyer’s agent works. In that case, the real estate brokerage would be representing both you and the seller and you’d both have to agree to that.
Because there’s a potential for conflicts of interest with dual agency, all parties must give their informed consent. In many states, that consent must be in writing.
Designated Agency
A form of disclosed dual agency, “designated agency” allows two different agents within a single firm to represent the buyer and seller in the same transaction. To avoid conflicts that can arise with dual agency, some managing brokers designate or appoint agents in their company to represent only sellers, or only buyers. But that isn’t required for designated agency. A designated, or appointed, agent will give you full representation and represent your best interests.
Nonagency Relationship
In some states, you can choose not to be represented by an agent. That’s referred to as nonagency or working with a transaction broker or facilitator. In general, in nonagency representation, the real estate professional you work with owes you fewer duties than a traditional agency relationship. And those duties vary from state to state. Ask the person you’re working with to explain what he or she will and won’t do for you.
Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.
HOT HOME LISTING OF THE WEEK!
6448 Kola Court NW, Albuquerque, NM 87120 $399,000
4 Bedrooms / 3 Bathrooms (2 full, 1 half) / 2587 Square Feet
Exceptional custom home! Cul-de-sac location and huge lot! 4BDR/3BA/3CG with master bdr split plan. Private owner’s suite on its own wing features tray ceiling, garden tub, sep shower, double sink vanity, walk-in closet & linen closet. REFRIG AIR! Great room & dining room share a cozy two-way fireplace and are open to the custom kitchen with great entertaining space! Kitchen features beautiful cabinets with crown molding, recessed lighting, granite countertops, backsplash, bkst bar, tile flooring, walk-in pantry! Oversized backyard with backyard access, extended covered patio, trees, shrubs and walled for privacy. Perfect for summer BBQs and enjoying the best of NM weather!
Contact the Sandi Pressley team for additional details!
Get your Morning Inspiration with the Sandi Pressley Team