While most people associate the term “real estate agency” with a physical structure that houses the offices of those that promote real estate transactions, it encompasses far more. The Law of Agency regulates those whose business it is to promote real estate transactions, and it specifically specifies the proper conduct of the relationship between those who own real property and those they want to serve them if they decide to sell it. Visit Davy Talley – Keller Williams.
The most common type of relationship is that which exists between property owners and the real estate agent to which they turn for assistance in finding a buyer for their property. They are hiring the real estate agency for the duration of the deal, and that real estate agency and its agents are all legally obligated to protect the property owners’ interests. Both of their decisions on behalf of the owners must be done in good faith, and the owners must negotiate with the real estate agent in good faith as well.
The Different Contract Types
A real estate agency and its clients may engage in one of three types of transactions. In the first, the real estate agency represents only the seller; in the second, the real estate agency represents only the buyer; and in the third, the real estate agency represents only the buyer.
A disclosed limited agent represents both the seller and the buyer, or both buyers interested in purchasing a single house. Only with the written consent of all parties concerned will a real estate agency serve as a disclosed limited agent, and the relationships between all parties and the real estate agency must be made clear to everyone before a proposal can be entertained.
If clients have concerns that are outside the reach of the real estate agency’s expertise, the agency should refer them to the appropriate expert, and if the real estate agency has material knowledge that is not readily accessible to any party and may influence their judgement about the property, the agency is required to reveal it.