Real estate law is not the easiest kind of law to understand. Whether you are buying or selling a home it is vital that you choose a legal professional to represent you who is able to meet the needs that you have. You have options for representation when it comes to property transactions. Once you understand your options in terms of agency relationships you will then be able to choose the one that is most fitting for you. The important thing is that you find a legal representative who will do everything in his power to ensure that your rights are protected, whether you are buying or selling a home.
One kind of agency relationship is known as buyer’s agency. If you are purchasing a house then you can hire an agent for yourself who will represent you and only you. This person is known as an exclusive buyer’s agent or representative. Real estate law in this case states that the buyer’s representative would owe you what is known as a fiduciary duty and would work in the best interests of you, the client.
If you wish you can choose to pay the buyer’s agent yourself or if you prefer you can ask the seller or the seller’s agent to see to it that your agent receives a share of the commission from the sale of the dwelling. This is up to you.
On the other hand if you are selling your house and decide to hire the services of an agent who will list it exclusively for you then you have hired an exclusive selling representative or agent who will owe duties of a fiduciary nature to you. In most cases you would see to it that the selling rep receives a commission when the sale closes.
Most selling representatives will agree to pay the buyer’s agent a percentage of the sales commission. Real estate law stipulates what the rights of both the buyer’s agent and the selling agent are. It is worth knowing though that if the selling representative finds a buyer then this agent is entitled to keep not just a portion of the commission but all of it.
In real estate law another agency relationship you may think about entering into is known as a subagency. When you buy a house the agent you may decide to work with may not actually be a representative or an agent but maybe what is known as a subagent of the seller. The subagent will represent the seller and the agent of the seller and will act in the best interests of those individuals.
If the agent you hire is a subagent then you can expect to be treated respectfully and honestly but you need to know that this person’s greatest loyalty is to the seller (s) and the seller’s agent. When you hire the right professional, you’ll have the advantage of real estate law knowledge on your side.