A home buyer who desires the assistance of a REALTOR® should be aware of the potential agency relationships in the purchase of real estate. Below are the different types of relationships that you will encounter when working with a reputable real estate firm.
With this method, a REALTOR® enters into a written agreement to represent a buyer in the purchase of real estate. As the buyer's agent, a REALTOR® is able to fully represent a buyer and may provide substantial advice and assistance to the buyer far beyond that which a subagent can provide. With Buyer Agency, there is no confusion about who represents the buyer—your agent has a fiduciary relationship with you and must act in your best interest.
In this scenario, both REALTORS® involved represent the seller. The REALTOR® working with a potential buyer is a sub-agent. The REALTOR® has a fiduciary, or trust relationship with the seller. A sub-agent working with a potential buyer customer is not working for the buyer, but rather is working with the buyer to assist the buyer in finding a property to buy.
This is a relationship in which the REALTOR® acts as the agent for both the seller and the buyer in the same transaction with the written consent of all parties. Duties of the REALTOR® include confidentiality to both parties and taking no action that is adverse or detrimental to either party.
Do you live in the Main Line Philadelphia area and have questions about home buyer / agency relationships? Contact Duffy Real Estate—we would be happy to get your questions answered.