When buying real estate, you may have several choices
as to how you want a real estate firm and its agents to
work with you. For example, you may want them to represent
only you (as a buyer's agent). You may be willing for
them to represent both you and the seller at the same time
(as a dual agent). Or you may agree to let them represent
only the seller (seller's agent or subagent). Some agents
will offer you a choice of these services. Others may not.

Buyer’s Agent
Duties to Buyer: If the real estate firm and its agents
represent you, they must
• promote your best interests
• be loyal to you
• follow your lawful instructions
• provide you with all material facts that could influence your decisions
• use reasonable skill, care and diligence,
• account for all monies they handle for you.
Once you have agreed (either orally or in writing) for the firm
and its agents to be your buyer's agent, they may not
give any confidential information about you to sellers
or their agents without your permission so long as they
represent you. But until you make this agreement with
your buyer's agent, you should avoid telling the agent
anything you would not want a seller to know.
Unwritten Agreements: To make sure that you and
the real estate firm have a clear understanding of what
your relationship will be and what the firm will do for you,
you may want to have a written agreement. However,
some firms may be willing to represent and assist you for
a time as a buyer's agent without a written agreement. But
if you decide to make an offer to purchase a particular
property, the agent must obtain a written agency
agreement. If you do not sign it, the agent can no longer
represent and assist you and is no longer required to keep
information about you confidential. Furthermore, if you
later purchase the property through an agent with another
firm, the agent who first showed you the property may
seek compensation from the other firm.
Be sure to read and understand any agency agreement
before you sign it.
Services and Compensation: Whether you have
a written or unwritten agreement, a buyer's agent will
perform a number of services for you. These may
include helping you
• find a suitable property
• arrange financing
• learn more about the property
• otherwise promote your best interests.
If you have a written agency agreement, the agent can also help you prepare and
submit a written offer to the seller.
A buyer's agent can be compensated in different
ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from
the seller or listing agent first, but require you to pay if
the listing agent refuses. Whatever the case, be sure your
compensation arrangement with your buyer's agent is
spelled out in a buyer agency agreement before you make
an offer to purchase property and that you carefully read
and understand the compensation provision.

Dual Agent
You may permit an agent or firm to represent you
and the seller at the same time. This “dual agency relationship”
is most likely to happen if you become interested
in a property listed with your buyer's agent or the agent's
firm. If this occurs and you have not already agreed to a
dual agency relationship in your (written or oral) buyer
agency agreement, your buyer's agent will ask you to sign
a separate agreement or document permitting him or her to
act as agent for both you and the seller. It may be difficult
for a dual agent to advance the interests of both the buyer
and seller. Nevertheless, a dual agent must treat buyers
and sellers fairly and equally. Although the dual agent
owes them the same duties, buyers and sellers can prohibit
dual agents from divulging certain confidential information
about them to the other party.
Some firms also offer a form of dual agency called
“designated agency” where one agent in the firm represents
the seller and another agent represents the buyer.
This option (when available) may allow each “designated
agent” to more fully represent each party.
If you choose the “dual agency” option, remember
that since a dual agent's loyalty is divided between
parties with competing interests, it is especially important
that you have a clear understanding of
• what your relationship is with the dual agent
• what the agent will be doing for you in the transaction.
This can best be accomplished by putting the agreement in writing at the
earliest possible time.
Seller’s Agent Working With a Buyer
If the real estate agent or firm that you contact does
not offer buyer agency or you do not want them to act as
your buyer agent, you can still work with the firm and its
agents. However, they will be acting as the seller's agent
(or “subagent”). The agent can still help you find and
purchase property and provide many of the same services
as a buyer's agent. The agent must be fair with you and
provide you with any “material facts” (such as a leaky
roof) about properties.
But remember, the agent represents the seller—not
you— and therefore must try to obtain for the seller the
best possible price and terms for the seller's property.
Furthermore, a seller's agent is required to give the seller
any information about you (even personal, financial or
confidential information) that would help the seller in the
sale of his or her property. Agents must tell you in writing
if they are sellers' agents before you say anything that can
help the seller. But until you are sure that an agent is
not a seller's agent, you should avoid saying anything
you do not want a seller to know.
Sellers' agents are compensated by the sellers.

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