What you need to know about Real Estate Agents, Brokers and Dual Agencies

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 Real Estate Agents, Brokers and Dual AgentsWith so many real estate agencies in Prescott bearing different titles I thought I would share with you the differences. With a better understanding of the roles that agents, brokers and dual agencies have you can make better informed decision when selling or buying your home.

Real Estate Agent vs. Real Estate Broker

The main difference between a real estate agent and a broker lies in the amount of education and experience each has in the real estate market. While both a real estate agent and a broker may list and sell real estate, the broker is required to have additional education and experience.

The real estate broker is authorized to operate a private real estate firm, and supervises the transactions conducted by the salespeople, to ensure the ethical and legal standards established by the Arizona Association of REALTORS® are upheld.

A real estate agent on the other hand is tested and licensed by the state of Arizona and is considered an independent contractor. A Real Estate Agent must also work under a licensed broker.

What is dual agency?

A Dual Agency occurs when a real estate broker represents both the buyer and seller in the same transaction. Dual agency is legal in Arizona provided that it is fully disclosed and consented to by all parties involved.

If you find yourself involved in a dual agency relationship, before you receive an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.

Since the broker has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.

Dual Agency relationship limitations:

  • The Agent will deal with the Buyer and the Seller impartially
     
  • The Agent will have a duty of disclosure to both the Buyer and the Seller

Dual Agency relationship exceptions:

  • The Agent will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the Offer or that the Seller is willing to accept a price or terms other than those contained in the Listing.
     
  • The Agent will not disclose the motivation of the Buyer or the Seller to sell unless authorized by the Buyer or the Seller.
     
  • The Agent will not disclose personal information about either the Buyer or the Seller unless authorized in writing.
     
  • The Agent will disclose to the Buyer the defects about the physical condition of the Property known to the Agent.

To learn more or have questions about what agency would work best for you click here to contact the Kathleen Yamauchi Real Estate Group today!

 

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