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A GENERAL
UNDERSTANDING ABOUT AGENCY
The type
of relationship formed between an agent and a client
is called a fiduciary relationship. A fiduciary
relationship is one based on trust because the agent
owes the following duties to the client:
-
Accountability
-
Confidentiality
-
Diligence
-
Full
Disclosure
-
Honesty
-
Reasonable Skill & Care
-
Undivided Loyalty
The courts
have defined an agent's responsibilities as putting
the client's interest before that of anyone else.
Courts also require the real estate agent to be fair
and honest in all aspects of the transaction. In
short, the agent owes allegiance to the buyer or
seller who has client status but must always be fair
and honest to the other party.
THE THREE SPECIFIC TYPES OF
AGENCY
- SELLER
AGENCY
The listing agent has a fiduciary
relationship with the owner of the property. This
means the seller is the client to whom the listing
agent owes loyalty, obedience, diligence, disclosure,
confidentiality, accountability and reasonable skill
and care. The listing agent cannot negotiate on the
buyer's behalf, make tactical recommendations, or act
as the buyer's representative. Legally and ethically,
the buyer may be entitled to receive market data with
the seller's permission. In addition, the purchase
agreement prepared by the listing agent can be
contingent on the necessary inspections to help the
buyer determine material facts about the property.
Once again, if the listing agent is aware of
substantial problems with the property, they must be
disclosed to the buyer. The agent can provide the
buyer with many valuable services. He or she can set
up appointments, assist in completing the standard
purchase agreement, present an offer, explain
financing alternatives, real estate terms, local
practices and disclose all known material facts about
the property.
- BUYER
AGENCY
When a buyer is exclusively represented
by an agent, all the fiduciary duties are owed by the
agent to the buyer and not the seller. The buyer has
freedom to discuss the market value of the property,
strategies, negotiation, and personal finances with
the agent. The buyer can obtain the opinion and advice
of the agent concerning the condition of the property,
the terms and conditions of the offer, the seller's
motivation for selling and other information that a
seller's agent cannot disclose.
- DUAL
AGENCY
Dual agency occurs when a buyer's agent
shows a property in which his or her buyer's client
has expressed an interest and is listed by his
or her own company. This means the seller's agent and
the buyer's agent must act in a dual agent capacity. A
dual agent will then represent both the buyer and the
seller, but must in no way compromise the interests of
either party. The buyer and seller must, by law, be
treated fairly and honestly by the dual agent(s)
SUMMARY
Once you understand agency
relationships and the services that can be provided,
you will be asked to sign an agency disclosure form in
accordance with Connecticut law. As a buyer or seller
be assured that you are working with a real estate
company that cares about your receiving a high level
of service and satisfaction. Carol Millman is committed
to having your transaction be pleasant, successful and
handled in a professional manner. She works very hard
throughout the process to earn your loyalty and
respect.
Higgins Group Real Estate
looks forward to working
together to meet your needs and assist you in this
exciting endeavor. Carol Millman will be able to
answer any questions that you might have and assist
you at arriving at an agency relationship that
addresses your needs. | 
