As stated elsewhere, Listing Agents, sometimes known as Seller Agents, have a strong fiduciary duty to represent the Seller, who is the owner of the property being listed for sale.
But Buyers need fiduciary representation as well. After all, you are looking at making what might be the biggest financial purchase of your life.
Should you use the guy or gal whose name and phone number is on the sign in front of that house you want to buy? You know, the agent who is looking to get the most money from you for the Seller?
I think it might be a better idea to use someone who will represent your best interests, and not the interests of the person on the other side of this transaction.
In every transaction there is a buyer and a seller. The seller wants to get the highest return on their real estate investment, and the buyer wants to purchase at the lowest price possible. It’s the simple “Buy low, Sell high” philosophy.
It amazes me that so many people believe that just one agent can represent both parties to the transaction when each party has a different motivation. The most frequent analogy that I have seen involves a similar (but not equal) profession, that of Attorneys. Could you imagine the same lawyer representing both the Plaintiff and the Defendant?
In this context we will use the terms “Agent” and “Broker” interchangeably.
Listed here are the basic features of Buyer Agency. This verbiage is directly from the Colorado Real Estate Commission standardized and approved Buyer Agency Agreement, and the numbering seen below is the same as on that contract.
5. BROKERAGE DUTIES. Brokerage Firm, acting through Broker, as either a Transaction-Broker or a Buyer’s Agent, must perform the following Uniform Duties when working with Buyer:
5.1. Broker must exercise reasonable skill and care for Buyer, including but not limited to the following:
5.1.1. Performing the terms of any written or oral agreement with Buyer;
5.1.2. Presenting all offers to and from Buyer in a timely manner regardless of whether Buyer is already a party to a contract for the Purchase of Property;
5.1.3. Disclosing to Buyer adverse material facts actually known by Broker;
5.1.4. Advising Buyer regarding the transaction and advising Buyer to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker;
5.1.5. Accounting in a timely manner for all money and property received; and
5.1.6. Keeping Buyer fully informed regarding the transaction.
5.2. Broker must not disclose the following information without the informed consent of Buyer:
5.2.1. That Buyer is willing to pay more than the purchase price offered for the Property;
5.2.2. What Buyer’s motivating factors are;
5.2.3. That Buyer will agree to financing terms other than those offered; or
5.2.4. Any material information about Buyer unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing.
5.3. Buyer consents to Broker’s disclosure of Buyer’s confidential information to the supervising broker or designee for the purpose of proper supervision, provided such supervising broker or designee does not further disclose such information without consent of Buyer, or use such information to the detriment of Buyer.
5.4. Broker may show properties in which Buyer is interested to other prospective buyers without breaching any duty or obligation to Buyer. Broker is not prohibited from showing competing buyers the same property and from assisting competing buyers in attempting to purchase a particular property.
5.5. Broker is not obligated to seek other properties while Buyer is already a party to a contract for the Purchase of Property.
5.6. Broker has no duty to conduct an independent inspection of the Property for the benefit of Buyer and has no duty to independently verify the accuracy or completeness of statements made by a seller or independent inspectors. Broker has no duty to conduct an independent investigation of Buyer’s financial condition or to verify the accuracy or completeness of any statement made by Buyer.
5.7. Broker must disclose to any prospective seller all adverse material facts actually known by Broker, including but not limited to adverse material facts concerning Buyer’s financial ability to perform the terms of the transaction and whether Buyer intends to occupy the Property as a principal residence.
5.8. Buyer understands that Buyer is not liable for Broker’s acts or omissions that have not been approved, directed, or ratified by Buyer.
6. ADDITIONAL DUTIES OF BUYER’S AGENT. If the Buyer Agency box at the top of page 1 is checked, Broker is Buyer’s Agent, with the following additional duties:
6.1. Promoting the interests of Buyer with the utmost good faith, loyalty and fidelity;
6.2. Seeking a price and terms that are acceptable to Buyer; and
6.3. Counseling Buyer as to any material benefits or risks of a transaction that are actually known by Broker.
We take this obligation and duty seriously.
Our Buyer’s Agents are here for you.
Contact us now, and let one of our dedicated and experienced Buyer Agents represent you.
Let’s get started with an initial consultation either in person or over Zoom so that we can find the home that best fits your needs.
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