With All the Help There is On The Internet

– Why Do I Need an Agent?

     With regard to searching for properties on the internet, there are some important limitations. One of them is that house listings are not always updated so you may often  be chasing one after it has gone under agreement.  If you call listing brokers directly, you will not be be getting impartiality about other properties you may be interested in since they stand to make twice as much money by selling their own listings to you.  This leaves you with the task of calling on every property, setting your own appointments and having no one on your side.

      Since buying a home is not something you do on a regular basis, there is no reason for you to learn how to be a real estate agent.  Plodding through the maze of listings, property values, zoning regulations and inspection issues is something best left to those who do it for a living.   Help is available, and it usually costs you nothing.

     The profession of real estate agency has evolved dramatically over the last ten years and it is due, not only to changing technology, but also to the sophistication of today's buyers.  With all of the information now available at our fingertips, we are able to bring a higher level of service in a shorter amount of time.   The old concept of a real estate agent whose qualifications were that she lived in town and had put her children through the school system no longer suffice for today's  home buyer needs.  

      Many realtors are specializing and developing their own niches.  One of those niches is buyer broker representation.  Because of this innovation, there is no reason to embark on your home purchase alone.  Home buying is a complicated process and one that is best coordinated by a professional who, not only helps you to find a property, but also has the knowledge necessary to bring your transaction to a successful closing.

     -- Exclusive representation. Complete loyalty without conflicts of interest;

     -- Unbiased showing of all available homes whether listed with a brokerage or

         offered by for-sale-by-owners;

     -- A thoroughness about properties, including pointing out flaws that no conventional     

         agent would point out;

         than the asking price;

     -- Help in finding a good home inspector, lender, and an attorney.

     A traditional real estate broker has no obligation to  recommend  professionals to you.    Because of this, you will most often find that they will recommend three or more professionals (bankers, attorneys, and, especially home inspectors) because they have and want no liability to the recommendation of one.

    A buyer broker, on the other hand, does have a liability to recommend the services of the best professionals possible. This is part of why you are hiring a broker, for a professional opinion.  When you ask for advice on professionals to help you with your home transaction, do you really want three choices? How will you know which one to use? When you ask for help with these issues, you need answers.  Only a Buyer Broker with an experienced team of professionals can give you a direct recommendation.

     This is a very important question and one worth addressing.  Since the commission for a broker is a percentage of the total price why would a buyer agent even try to get a low price for her client?

     The answer is clear.  A  broker who specializes in representing buyers has usually been doing so for a long time.  A career is not made from one client and one commission, but from many clients. A professional buyer agent would not have much of a business without first having cultivated and maintained a good reputation as a buyer advocate, and the only way to achieve that is by doing the best job possible for everyone you work with.

     Just as an attorney works hard to win cases for clients,  a buyer advocate must also build and keep a good track record in a business that is often referral driven.  That's why it is so important  to work with a buyer broker who has been doing it for a long time and who specializes in buyer representation.                                 

The Mandatory Agency Disclosure Form

   There has long been confusion about real estate agency.  Many people believe that the realtor who is setting up appointments and showing them houses is working for them as their agent.  Many times this is not true.  To clarify the issue, Massachusetts has made it mandatory for every real estate agent to have the state agency disclosure form signed by all potential buyers.  It must be presented and signed prior to showing properties. 

Exhibit C

MASSACHUSETTS MANDATORY LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE

This disclosure is provided to you, the consumer, by the real estate agent listed on this form.  Make sure you read both sides of this form.  The reverse side contains a more detailed description of the different types of relationships available to you.  This is not a contract.

THE TIME WHEN THE LICENSEE MUST PROVIDE THIS  NOTICE TO THE CONSUMER:

All real estate licensees must present this form to you at the first personal meeting with you to discuss a specific property.  The licensee can represent you as the seller (Seller's Agent) or represent you as the buyer (Buyer's Agent) and also can assist you as a facilitator.

CONSUMER INFORMATION AND RESPONSIBILITY:

Whether you are the buyer or seller you can choose to have the advice, assistance and representation of your own agent who works for you.  Do not assume that a real estate agent works solely for you unless you have an agreement for that relationship.  With your consent, licensees from the same firm may represent a buyer and seller in the same transaction.  These agents are referred to as dual agents. 

Also a buyer and seller may be represented by agents in the same real estate firm as designated agents.  The "designated seller or buyer agent" is your sole representative.  However where both the seller and buyer provide written consent to have a designated agent represent them then the agent making such designation becomes a "dual agent" for the buyer and seller.  All real estate agents must, by law, present properties honestly and accurately.  They must also disclose known material defects in the real estate.

The duties of a real estate agent do not relieve the consumers of the responsibility to protect their own interests.  If you need advice for legal, tax, insurance or land survey matters it is your responsibility to consult a professional in those areas.  Real Estate agents do not have a duty to perform home, lead paint or insect inspections nor do they perform septic system, wetlands or environmental evaluations.  

RELATIONSHIP OF REAL ESTATE LICENSEE WITH THE CONSUMER

(check one)         ___Seller's agent               ___Buyer's agent            ___Facilitator

IF A SELLER'S OR BUYER'S AGENT IS CHECKED ABOVE COMPLETE THE SECTION BELOW:

Relationship with others affiliated with ________________________________________________________

(Check one)       ___The real estate agent listed below, the real estate firm or business listed above and all other affiliated agents have the same relationship with the consumer named herein (seller or buyer agency, not designated agency). 

                       ___Only the real estate agent listed below represents the consumer named in this form (designated seller or buyer agency).  In this situation any firm or business listed above and other agents affiliated with the firm or business do not represent you and may represent another party in your real estate transaction.

By signing below I, the real estate licensee, acknowledge that this disclosure has been provided timely to the consumer named herein. 

____________________________   _________________________       _____________________          __________________

(signature of real estate agent)      (Printed name of real estate agent)     (License Number/Type)                (Today's Date)

By signing below I, the consumer, acknowledge that I have received and read the information in this disclosure.

___________________________    ___________________________      ___________________

(Signature of consumer)                     (Printed name of consumer)                    (Today's Date)

___________________________    ___________________________      ____________________

(Signature of consumer)                      (Printed name of consumer)                   (Today's Date)

___Check here if the consumer declines to sign this notice.

(On the reverse side of the form):

TYPES OF AGENCY REPRESENTATION

SELLER'S AGENT

A seller can engage the services of a real estate agent to sell his property (called the listing agent) and the real estate agent is then the agent for the seller who becomes the agent's client.  This means that the real estate agent represents the seller.  The agent owes the seller undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provided, however, that the agent must disclose known material defects in the real estate.  The agent must put the seller's interests first and negotiate for the best price and terms for their client, the seller.  (The seller may authorize sub-agents to represent him/her in marketing its property to buyers, however the seller should be aware that wrongful action by the real estate agent or sub-agents may subject the seller to legal liability for those wrongful actions).

BUYER'S AGENT   

A buyer can engage the services of a real estate agent to purchase property and the real estate agent is then the agent for the buyer who becomes the agent's client.  This means that the real estate agent represents the buyer.  The agent owes the buyer undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provided, however, that the agent must disclose known material defects in the real estate.  The agent must put the buyer's interests first and negotiate for the best price and terms for their client, the buyer.  (The buyer may also authorize sub-agents to represent him/her in purchasing property, however, the buyer should be aware that wrongful action by the real estate agent or sub-agents may subject the buyer to legal liability for those wrongful actions).

(NON-AGENT) FACILITATOR 

When a real estate agent works as a facilitator that agent assists the seller and buyer in reaching an agreement but does not represent either the seller or buyer in the transaction.  The facilitator and the broker with whom the facilitator is affiliated owe the seller and buyer a duty to present each property honestly and accurately by disclosing known material defects about the property and owe a duty to account for funds.  Unless otherwise agreed, the facilitator has no duty to keep information received from a seller or buyer confidential.  The role of facilitator applies only to the seller and buyer in the particular property transaction involving the seller and buyer.  Should the seller and buyer expressly agree a facilitator relationship can be changed to become an exclusive agency relationship with either the seller or the buyer.

DESIGNATED SELLER'S AND BUYER'S AGENT

A real estate agent can be designated by another real estate agent (the appointing or designating agent) to represent either the buyer or seller, provided the buyer or seller expressly agrees to such designation.  The real estate agent once so designated is then the agent for either the buyer or seller who becomes their client.  The designated agent owes the buyer or seller undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability, provided, however, that the agent must disclose known material defects in the real estate.  The agent must put their client's interests first and negotiate for the best price and terms for their client.  In situations where the appointing agent designates another agent to represent the seller and an agent to represent the buyer then the appointing agent becomes a dual agent.  Consequently a dual agent cannot satisfy fully the duties of loyalty, full disclosure, obedience to lawful instructions which is required of an exclusive seller or buyer agent.  The dual agent does not represent either the buyer or the seller solely only your designated agent represents your interests. The written consent for designated agency must contain the information provided for in the regulations of the Massachusetts Board of Registration of Real Estate Brokers and Salespeople (Board).  A sample designated agency consent is available at the Board's website at www.mass.gov/dpl/re.

    DUAL AGENT

A real estate agent may act as a dual agent representing both the seller and buyer in a transaction but only with the express and informed consent of both the seller and buyer.  Written consent to dual agency must be obtained by the real estate agent prior to the execution of an offer to purchase a specific property.  A dual agent shall be neutral with regard to any conflicting interest of the seller and buyer.  Consequently a dual agent cannot satisfy fully the duties of loyalty, full disclosure, obedience to lawful instructions which is required of an exclusive seller or buyer agent.  A dual agent does, however, still owe a duty of confidentiality of material information and accounting for funds.  The written consent for dual agency must contain the information provided for in the regulations of the Massachusetts Board of Registration of Real Estate Brokers and Salespeople (Board).  A sample dual agency consent is available at the Board's website at www.mass.gov/dpl/re.