About Buyer Agency
There are many advantages to working with an Old Newport Realty. With us you will never miss a new listing, and we will ensure the best price in today's market. Old Newport consultants live, work and play in Newport ~ and we're proud of that. Some of us are even lifelong residents. We look forward to sharing the lessor known wonders of this city with you.
Our agents represent your interests. Not just because we think it is good business to, but also that we have to. There are a few established laws governing agency relationships designed to protect buyers. Here are a few of the basics:
A real estate agent representing a buyer or seller must meet fiduciary clauses. We are required to meet standards of confidentiality, obedience, fidelity, loyalty, accounting, and reasonable skill and care. When a real estate agent does not contractually represent a buyer or seller, no fiduciary duties exist. However, even when there are no contractual duties, real estate professionals are still obligated to be honest to all parties with whom they interact. In summary, two basic scenarios exist:
At Old Newport Realty, our entire team promises to treat you better than family. For example, we will:
- Be loyal and act in the client's best interests
- Obey all lawful instructions
- Protect all confidences
- Exercise professional skill and diligence when answering client questions
- Be accountable for handling all funds and paperwork
- Present all offers in a timely fashion, and
- Execute other duties as outlined in the buyer agency agreement
Presumed Buyer’s Agent (no written agreement):
When a person goes to a real estate agent to be assisted in finding a home, the agent is presumed to be representing the buyer. The agent can at this time show the buyer properties that are not listed by the agent’s real estate company. A presumed buyer’s agent, however, may not make or prepare an offer, nor can s/he negotiate a sale for the buyer. The buyer in this circumstance is not under obligation to pay fees to the presumed agent.
If for any reason the buyer does not want the agent to represent him or her as a presumed agent the buyer can decline or terminate a presumed agency relationship simply by saying so.
Buyer’s Agent (by written agreement):
A buyer or tenant may choose to enter into a written contract with a real estate agent. This ensures that an agent will represent the buyer or tenant in locating a property to buy or rent. The agent is then known as the 'buyer’s agent'. This agent assists the buyer in evaluating properties and preparing offers. S/he is obligated to negotiate in the best interests of the buyer or tenant. The agent’s fee is determined by a written agreement between the agent and the buyer or tenant. If you as a buyer or tenant wish to have an agent represent you exclusively, you must enter into a written buyer agency agreement.
Dual Agents
The possibility of dual agency arises when the buyer’s agent and the seller’s agent both work for the same real estate company. This is common when the buyer is interested in property listed by that company. The real estate company, or broker, is called the “dual agent.” Dual agents do not act exclusively in the interests of either the seller or buyer, or landlord or tenant, and therefore cannot give undivided loyalty to either party. A conflict may arise since the interests of the seller and buyer may be different or adverse.
Both seller and buyer, or landlord and tenant, can agree to dual agency by signing a Consent For Dual Agency form. The real estate company (the “dual agent”) will then assign one agent to represent the seller or landlord (the seller’s “intra-company agent”) and another agent to represent the buyer or tenant (the buyer’s “intra-company agent”). Intra-company agents may provide the same services to their clients as exclusive seller’s or buyer’s agents, including advising their clients as to price and negotiation strategy, provided the clients have both consented to be represented by dual agency.
If either party does not agree to dual agency
The real estate company may withdraw the agency agreement for that particular property with the buyer, seller, or both. If the seller’s agreement is terminated, the seller must then either represent him or herself or arrange to be represented by an agent from another real estate company. If the buyer’s agreement is terminated, the buyer or tenant may choose to enter into a written buyer agency agreement with an agent from a different company. Alternatively, the buyer or tenant may choose not to be represented by an agent of his or her own but simply to receive assistance from the seller’s agent, from another agent in that company, or from a cooperating agent from another company.