Nick Wolter

Just another WordPress site

Main Logo

Nick Wolter

Wolter Realty Group

612.888.9300
  • Instagram Logo
  • Linkedin Logo
  • Pinterest Logo
  • Twitter Logo
  • Home
  • Search
  • Listings
  • Resources
    • Sellers
    • Buyers
  • News
  • About
  • Testimonials
    • Buyers
    • Sellers
  • Contact
MENUMENU
  • Home
  • Search
  • Listings
  • Resources
    • Sellers
    • Buyers
  • News
  • About
  • Testimonials
    • Buyers
    • Sellers
  • Contact

Understanding Agency

August 30, 2013 by

Untitled Document

It's important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you:

  1. Seller's representative (also known as a listing agent or seller's agent)
    A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.
  2. Buyer's representative (also known as a buyer's agent)
    A buyer's agent is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or through a commission split with the seller's agent.
  3. Subagent
    A subagent owes the same fiduciary duties to the agent's customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer's agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.
  4. Disclosed dual agent
    Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.
  5. Designated agent (also called appointed agent)
    This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.
  6. Nonagency relationship (called, among other things, a transaction broker or facilitator)
    Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.

Oops! We could not locate your form.

  • Calculators
  • Finding A Loan Officer
  • The Loan Process
  • Mortgage Glossary
  • Markets Updates
  • Instagram Logo
  • Linkedin Logo
  • Pinterest Logo
  • Twitter Logo
Main Logo

Nick Wolter

Wolter Realty Group

Twin Cities Minnesota.

  • Facebook Logo
  • Linkedin Logo
  • Pinterest Logo
  • Twitter Logo

Navigation

  • Calculators
  • Finding A Loan Officer
  • The Loan Process
  • Mortgage Glossary
  • Markets Updates

Let’s stay in touch . . .

Realtor & Housing

Licensed In Minnesota

All information deemed reliable but not guaranteed and should be independently verified.


Copyright 2022 | MSLLC

Testimonials Popup
Your Neighborhood Market

Step 1 of 3 - Enter location address.

0%
  • NickWolter Logo
Online CMA

Step 1 of 5 - Enter your address.

0%
  • NickWolter Logo
  • Enter your address

  • Confirm your address

  • Tell us about your property

  • Additional comments can be added here

  • Add your contact information and submit the information

Custom Search

Step 1 of 3

0%
  • NickWolter Logo
  • NickWolter Logo
  • NickWolter Logo
In Home CMA

Step 1 of 4 - Best Appointment Time

0%
  • NickWolter Logo
  • When would be a good time for you?

  • MM slash DD slash YYYY
  • :
  • :
  • Is there a second day that would work also?

  • MM slash DD slash YYYY
  • :
  • :
  • Where is the house?

  • Your Information