Why Every Buyer Needs A Buyer's Agent
Therefore, the manner of representation depends upon the type of brokerage service agreement involved.
Your real estate agent must give you a Missouri Broker Disclosure Form, which states the different types of agreements possible. These agreements assure that you are educated as to which parties in the transaction are being represented by your agent.
Missouri laws require that if you want representation, you must enter into a written agreement.
If you choose not to be represented by an agent, the real estate agent assisting you actually may be working for the other party to the transaction.
Choices available to you:
Seller's Limited Agent Buyer's Limited Agent Seller's Sub-agent (Agent of the Agent) Disclosed Dual Agent Designated Agent Transaction Broker
Seller's Limited Agent
The real estate agent has a duty to perform the terms of the written agreement* made with the Seller, to exercise reasonable skill and care for the Seller, and to promote the interests of the Seller with the utmost good faith, loyalty, and fidelity in the sale, lease, or management of the property.
In other words, to act in the Seller's best interests.
*The Listing Agreement
Buyer's Limited Agent
The real estate agent has a duty to perform to the written agreement* made with the Buyer, to exercise reasonable skill and care for the Buyer, and to promote the interests of the Buyer with the utmost good faith, loyalty, and fidelity in the purchase or lease of property.
In other words, to act in the Buyer's best interests.
Note: The Buyer's real estate agent's commission is generally paid by the Seller for properties advertised in the multiple listing service (MLS).
*The Buyer's Agency Agreement
Seller's Sub-Agent (Agent of the Seller's Agent)
The real estate agent owes the same obligations and responsibilities to the Seller as the Seller's Limited Agent.
For a more complete explanation of the benefits of using a Buyer's Agent over a traditional Seller Sub-Agency relationship, see:
Why Every Buyer Needs A Buyer's Agent
Disclosed Dual Agent
With written informed consent of all parties to the transaction, the real estate broker may represent both the Seller and the Buyer.
A Disclosed Dual Agent may disclose to either party any information that the real estate agent gains that is material to the transaction.
A dual agent may not disclose information that is considered confidential, such as:
Buyer will pay more than the purchase price Seller will accept less than the asking price Either party will agree to financing terms other than those offered Motivating factors for any person buying, selling, or leasing the property Terms of any prior offers or counter offers made by any party
Designated Agent
The real estate agent acts as your specific agent, whether you are a Buyer or Seller. When the broker makes this appointment, the other real estate agents in the company do not represent you.
There are two exceptions with both resulting in Dual Agency:
- The agent representing you as a Buyer is also the agent who listed the property you may want to buy.
- The supervising broker of two designated agents becomes involved in the transaction.
Transaction Broker
The real estate agent does not represent either party, therefore, does not advocate the interest of either party.
A transaction broker is responsible for performing the following:
Protect the confidences of both parties. Exercise reasonable skill and care. Present all written offers in a timely manner. Keep the parties fully informed. Account for all money and property received. Assist the parties in complying with the terms and conditions of the contract. Disclose to each party of the transaction any adverse material facts know by the agent. Suggest that the parties obtain legal advice.A transaction broker shall not disclose:
Buyer will pay more than the purchase price. Seller will accept less than the asking price. Motivating factors of the parties. Seller/Buyer will accept financing terms other than those offered.A transaction broker has no duty to:
Conduct an independent inspection of, or discover any defects in, the property for the benefit of either party. Conduct an independent investigation of the Buyer's financial condition.