Who is a Sellers Agent?
What is Seller Agency?
Although we cannot to explain you all the terms, nuances and specific regulations
related to sellers agents or seller agency as it pertains to every state on this
website we provide a handy summary of useful information that you may find helpful
to navigate you through the home selling process. It is wise that you always
contact your local real estate sellers agent and/or legal counsel for clarification
and specific advice.
The information on this site is categorized as follows:
1. Terms related
to Sellers Agents / Sellers Agency
2. Types of Agency
/ Agents
3. Seller Agent's
Obligations to Client
4. Termination
of a Sellers Agent / Sellers Agency Relationship
For Consumers: Click here to search the
National Sellers Agent Database
For Sellers Agents: Click
here to get your Accredited Seller Representative certification
Terms related to Sellers Agents / Seller Agency
- Real estate broker – Any person who for fee,
commission or other valuable consideration, or with the intention or with the
expectation of upon the promise of receiving or collecting a fee, commission
or other valuable consideration, does any of the following:- sell, exchange,
purchases, rents or leases, or negotiates, or offers, attempts or agrees to negotiate
the sale, exchange, purchase, rental or leasing of any real estate, or lists
or offers, attempts or agrees to list any real estate, or buys or offers to buy,
sells or offers to sell or otherwise deals in options on real estate, or advertises
or holds himself out as engaged in the business of selling, exchanging, purchasing,
renting or leasing real estate, or assists or directs in the procuring of prospects
or the negotiation or completion of any agreement or transaction which results
or is intended to result in the sale, exchange, purchase, leasing or renting
of any real estate.
- Real estate agent – Also referred to as a
real estate salesperson. A generic term pointing to a person licensed by a state
who holds either a real estate broker or real estate salesperson license who
assists people to buy, sell, rent or lease, manage, finance or value real estate
for some type of anticipated compensation.
- Listing – A contract by which a party employs
a licensed real estate broker to assist them in a real estate transaction which
usually refers to the sale of property.
- Listing contract – 1. An employment contract
between an owner and a licensed real estate broker entered into for the purpose
of the broker providing services to find ready, willing and able persons to buy,
rent or lease a particular property under the terms specified in the contract
for an identified period of time and where the owner agrees to pay certain identified
compensation. In addition, it usually authorizes the broker to be the agent of
the owner/principal and to perform services for the principal in a fiduciary
capacity involving the principal’s identified property. 2. The employment
of a licensed real estate broker by a prospective purchaser or lessee to locate
property to purchase or lease can also broadly be considered a type of listing.
- Client – Also referred to as a principal.
A person who empowers another to act as his or her representative or Agent. Client
relationship = fiduciary relationship.
- Principal – Also referred to as a client.
Commonly known as person who engages an agent for representation.
- Agent – One who has been authorized to act
for a party known as the principal/client.
- Agency – An expressed contractual relationship
which can be created in writing or orally in which a principal authorizes and
empowers the agent to act on behalf of the principal in dealing with third parties
and further agrees to accept full liability for the agents acts.
- Agency disclosure – A written declaration
signed by a prospective buyer or seller informing that party of the role that
the broker is playing in a specific transaction. The purpose of disclosure is
to explain whether the broker represents the buyer or seller or is a dual agent
(representing both) or a subagent (an agent of the seller’s broker). This
allows the customer to understand to which party the broker owes loyalty.
- Seller’s Agent - Also referred to as the
Listing Agent. The real estate agent/broker who has obtained a signed listing
contract from an owner/seller.
- Agreement of sale – A written agreement or
contract between a buyer and a seller in which they reach a “meeting of
minds” whereby the purchaser agrees to buy specific real estate and the
seller agrees to sell upon specific terms and conditions set forth in the contract.
- Buyer’s Agent – Also referred to as
the Selling Agent. Do not confuse a selling agent with the seller’s agent.
A real estate broker or salesperson who represents a prospective purchaser or
tenant in a real estate transaction and who owes the buyer/tenant/principal common-law
or statutory agency duties.
- Buyer-agency agreement – A principal-agent
relationship in which the broker is the agent for the buyer and owing fiduciary
responsibilities to the buyer/principal under the law of agency.
- Dual Agent – A real estate licensee who represents
both parties a real estate transaction as an agent. When the dual agency is disclosed
it can be legal in many states but when is has not been disclosed, it is illegal
in all states.
2. Types of Agency
- Seller Agency – Also referred to as Sellers
Agency. Real estate agent who represents a seller in a real estate transaction
as a client and who treats buyers as customers.
- Sub Agency – A situation where a seller client
expressly or implicitly authorizes the real estate broker to share the listing
with other real estate licensees to help market the seller's property and where
they also act as an agent for the seller.
- Buyer Agency – Real estate agent who represents
a buyer in a real estate transaction as a client and treats sellers as customers.
- Exclusive Agency – Real estate agent who
represents a client as his or her agent for a specified time period.
- Exclusive Right to Represent – Agreement
between a seller or a buyer client and a broker granting the broker the exclusive
right to represent the seller or the buyer client as an agent. Agent is entitled
to compensation regardless of who completes transaction during the period of
agreement.
- Single Agency – Real estate agent who represents
either the buyer or the seller as a client in a real estate transaction and never
both.
- Dual Agency – A real estate broker or licensee
who represents both the seller and the buyer in a real estate transaction and
where full fiduciary duties cannot be fulfilled to either. When it has the informed
consent of both the buyer and the seller is know as disclosed dual agent and
is legal in many states but without informed consent, it is illegal in all states.
3. Seller Agent's Obligations to the Client
- Loyalty – The Seller’s Agent must always
act in best interest of client and never in the best interest of the licensee.
- Obedience – The Seller’s Agent must
carry out all lawful instructions of client.
- Disclosure – of all material facts which
would have an affect on the decision making process.
- Accountability – The Seller’s Agent
must protect and account for all money, documents, valuables or other personal
property given to him/her by anyone.
- Confidentiality – Duty to keep the client's
information and/or discussions confidential and which survives the termination
of the agency relationship. Duty does not apply to legally required disclosures
involving known physical hazardous conditions of property.
- Reasonable Skill, Care and Due Diligence – The
Seller’s Agent must act in a reasonably capable and competent manner in
performing the duties and requirements of a licensee.
4. Termination of a Sellers Agent (the
Seller Agency Relationship)
- Completion or performance under the agreement.
- Death or insanity of agent or client/principal.
- Expiration of agreement.
- Mutual agreement to terminate or rescission.
- Impossibility of performance (for example the destruction of the property)
- Incapacity (for example mentally incapable) or bankruptcy of a principal.
- Repudiation – Either client/principal or agent withdraws consent, court
may deem this a breach of fiduciary obligation and breaching party may be held
liable for damages.
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