There are 3 main types of agencies. The first type of agency is called “Buyer’s Agency”, the second “Seller’s Agency” and the third is “Dual Agency”.
Realtors are required to maintain a certain amount of hours of education on agency. Agency Law is probably one of the most important and complex laws in the real estate industry. Realtors could attend lectures, classes, read book after book and learn something new every time about Agency Law because of its complexity. It’s also important that we as realtors, not only grasp the importance of agency but that we apply it at all times in our field.
What does this mean to the buyers or sellers? We’ll briefly explain to the consumers and clients what this means to them, with as little confusion as possible. When a consumer hires a realtor to help them buyer or sell a home, agency is formed between that buyer and seller and real estate agent.
When a client hires a realtor, the client, in all intents and purposes is actually hiring the Company that the realtor works for, not just the realtor. So when agency is first implied, the realtor and Company the realtor works for, represents that client, either buyer or seller.
As an example, a buyer hires a realtor to perform services finding them a home. As long as the buyer does not select a home that is listed with the same company as the realtor works for, then that buyer is being represented by that agent exclusively. Now let’s say the buyer finds their “dream” home but this home is also listed by the Company that the realtor works for. Now we have what we call “dual” agency, which basically means there is a conflict of interest between the parties concerned. This means that the buyer hired ABC Company but the seller also hired ABC Company to list their home for sale.
Real estate homes, llc and arizona real estate solutions were formed in january 2009 to eliminate this “conflict of interest”. Real estate homes, llc is an “exclusive” buyer’s agency, which means we only represent the buyer. Arizona real estate solutions, llc is an “exclusive” seller’s agency, which means we only represent the seller.