Buyer as Well as Seller May Hire Real Estate Agent

Duty of the seller’s agent and the buyer’s agent is to help sellers and buyers reach an agreement that is satisfactory to both parties. Both a seller’s agent and a buyer’s agent can show you properties, transmit your offers, and help you through the contract, inspection and loan process. Let’s assume you decide you want to be represented by a buyer’s agent.

You will be hiring mexico real estate agent to help you locate the home you want, negotiate the price and terms, and discover any information that could improve your bargaining position. You will enter into an agreement that sets out your obligations and the agent’s obligations. It is recommended this agreement be in writing so there is no misunderstanding in the future. Generally, your agreement with your agent will provide that the agent will first try to collect his or her compensation from the transaction. If your agent is unable to collect this fee from the transaction, however, you agree to pay it. The agreement also could require a deposit.

This deposit may be refunded if you purchase a home during the term of the agreement. If you do not purchase a home, the deposit may be retained by the agent as payment for services rendered in helping you with your search. The sequence of events leading to “compensation from the transaction” begins when the seller agrees to pay the listing broker a fee. The listing broker (if he or she is a Realtor member of the Multiple Listing Service) then offers to share that fee with any MLS member who identifies a willing buyer and is the “procuring cause of the sale.” An understanding of the term “procuring cause” is important to you since you have agreed to pay your agent’s compensation if the agent cannot collect from the transaction.

Procuring cause is an industry term that means the series of events that “caused the sale.” To help illustrate the term, let’s assume your boss tells you and your co-workers that he will pay $1,000 to the employee who produces a report on how many widgets your firm might be able to sell, who would be the buyers and why would they buy them. You research the information, survey and interview prospective buyers. The day before you plan to type your report, you leave your notes by the Xerox machine. A co-worker picks up your notes, types the report, gives it to your boss and claims the $1,000. Who should receive the $1,000? Was it your initial work that “caused” the report to be produced, or was it the action of your co-worker in typing the report? A similar situation can occur in a real estate transaction when a buyer stops in at an open house. It is the listing agent’s sign or advertisement that brings the buyer to the property. It is the listing agent who shows the buyer the property and gives the buyer information concerning the property. Even though the buyer’s agent writes the contract, this does not necessarily establish the buyer’s agent as procuring cause (“caused the sale”). Several factors enter into determining procuring cause, including how the buyer first learned about the property, who first showed the property and who initiated the buyer’s interest in purchasing the property. Simply writing the contract or representing the buyer usually is not sufficient evidence that the buyer’s agent caused the sale.

To collect compensation from the listing broker, your agent must be the “procuring cause” of the sale. Consequently, when you enter into an “Exclusive Buyer’s Representation Agreement” with a buyer’s agent, it is important that you: — Work with your agent exclusively. — Do not drop by open houses — contact your agent and let your agent make advance arrangements for you to see the property (preferably with your agent). — Have your agent call on ads that interest you. Have your agent handle all contacts with other real estate agents concerning properties of interest to you. Let your agent acquire the information you want and the answer to any of you questions. Instead of hiring an agent to represent you, you may decide to work with a seller’s agent. In that event, as you are not the agent’s client, there would be no agreement or obligation on your part to pay the agent’s fee. Whether you decide to work with a seller’s agent as a customer, or hire a buyer’s agent to represent you, selecting a real estate agent is the first step to take in the home buying process. To select an agent, you can check with friends, relatives and co-workers for their recommendations. Talk with three or four agents, discuss their services and fees. Once you narrow your selection, ask for the names of a couple of buyers they have assisted recently. You can call those buyers and find out if they were pleased with the service they received. Members of the Greater Tulsa Association of Realtors subscribe to a Code of Ethics, which requires honest treatment of clients and customers. Not all licensed real estate agents are members of the association or have access to property listed with the association’s Multiple Listing Service.

While comparing quarterly figures on a year-to-year basis still shows sizable increases, it is better to look at data quarter-to-quarter because puerto penasco foreclosures are not influenced by seasonal factors in the way that home sales are, for example. Some economists say it is falling prices that cause foreclosures, which then exacerbate an already soft market. If homeowners have equity in a property they will sell when they get into financial difficulty rather than letting a lender foreclose.

One comment

  1. builders in london
    #1

    I understand that it is always beneficial to hire an agent for selling or buying a property. But, suppose if you have hired a buyer’s agent who gets in touch with the seller’s agent to get the deal done between the two parties. What if after the deal and after buying the property, you come to know that some fraud has happened with you because the seller’s agent did not make the things clear to your agent? May be something like the property being under some legal obligations etc. Whom to consult at that time and who would be held responsible at that time? Your agent, the seller’s agent or the seller himself?

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