Buyer Agency

Home Buyers in Colorado have choices when purchasing a home and working with a real estate agent.   Buyers can have an agent represent them specifically, generally or not at all.  These options are called Buyer Agency, Transaction Brokerage and Customer.

Blog_Buyer_Agency_GraphicWhen initially meeting with an agent, buyers get an opportunity to learn about agency – usually with the agent supplying a Definitions of Real Estate Disclosure — this is NOT a contract, just a disclosure. It explains the different legal meanings of each type of working relationship.  From experience, most new clients are not overly excited about signing anything the first time they meet an agent – not even a disclosure that says in big letters, “This is not a contract.”  So I don’t require a client to sign, but I do make certain to disclose agency right away.

As you go about the process of finding and buying your new home, keep in mind your agent can represent specifically by being a Buyer’s Agent.  This has three important attributes.

1. Put your best interests first.

2. Notify you as to any material defects actually known by the agent regarding the property/transaction.

3. Seek your price and terms.

A Transaction Broker does not do these three tasks; instead a TB focuses on closing the transaction.  And sometimes, a buyer is not working with the agent at all, in which case the buyer is a customer.  Folks are customers all the time – say when shopping at the grocery store. However, real estate transactions have a lot legal ramifications, so having an agent to represent your best interests can be to your advantage. After all, the seller usually has an agent doing just that. As the buyer, you too deserve to be protected.

BTW, there is no fee to have an agent represent you.  Yes, there is a commission.  About 99% of the time, this fee is paid in full by the seller. So, you the buyer, do not have to pay an additional fee out of your pocket at closing.

Home_Contract_GraphicTake a moment to review the documents discussed in this blog. There is the Buyer Agency Agreement: UE BA Example Buyer  and the Definitions of Real Estate: AE Definitions Of Working Relationships .

 

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