Real estate Agent and Broker Roles

Are you involved in a real estate transaction and would like to fully understand the Real Estate Agent ans Broker roles?  Frequently, the first person you typically consult with about buying a home is a real estate agent or broker.  Although a real estate broker may provide helpful advice on many aspects of home buying, they may not represent or serve the best interest of the buyer.

The Real estate Agent and Broker’ roles are determined by the fiduciary relationship and contractual obligation that are established in advance.

The most common practice is for the seller to hire the real estate broker to list and sell the home.  The terms are negotiated, thereby defining the real estate agent and broker’ role and responsibility.  At this point the agent is clearly representing the “seller” and not the buyer.

As a “Buyer”, you should retain separate representation to protect your best interest.  In some states the real estate agent my represent both parties to the transaction, although this may in some minds create a conflict of interest.  By having a Real Estate lawyer represent you, the following key points of negotiations have a far better chance of working out in your favor.

Key Points:

Purchase Contract:  The purchase contract sets all of guidelines that must be met successfully complete the transaction

Price:  Have you been presented with a fair price? No one want to over-pay if it can be avoided.  Remember if the real estate agent or broker represents the “Seller” in any fashion, they are not allowed to make any disclosures that may be to the detriment of the “seller”.

Closing Cost Concessions:  As a “Buyer” certain concessions may be permissible by your prospective mortgage lender.  These concessions need to be negoisted and included within the body of the purchase contract.

Third party Provider:  Sometimes the real estate broker or “Seller” may try to influence which mortgage or Title Company should be used.  You are not required to accept any recommendations, and should compare the cost and services offered by other providers

By retaining a real Estate lawyer to handle all of the many details required to successfully purchase a home, you will be able to have the peace of mind, knowing the single largest investment that you may ever make, has the best opportunity to perhaps be one of the best investments you could have made

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