UNDERSTANDING REPRESENTATION

It is important to understand what legal responsibilities your real estate agent has to you and to other parties in the transaction.

Relationships generally fall into two categories:

Seller's Representation

A seller's representative, also known as a listing agent or seller's agent, is hired and represents the best interest of the seller. The relationship is usually created by a listing contract.

Buyer's Representation

This type of licensee, also know as a buyer's agent is hired by the prospective buyer to represent them in the transaction. The buyer's rep works in the buyer's best interest throughout the transaction. The buyers can pay the licensee directly through a negotiating fee, or the buyers' rep may be paid by the seller or by a commission split with the listing broker.

Disclosed Dual Agent

Dual agency is a relationship in which the brokerage represents both the buyer and the seller in the same real estate transaction. Dual agents typically owe limited duties to each of the parties. Because of the potential conflicts of interest in a dual agency relationship, it is vital that all parties give their informed consent and this must be in writing. Disclosed dual agency is legal in Massachusetts.