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Home Buying Guide

Agency Disclosure...

When you enter into a discussion with a real estate agent regarding a real estate transaction, you should understand what type of agency relationship or representation you wish to have. Michigan state law provides four different types of agency relationships including buyer agency (a buyer's agent), seller agency (a seller's agent), dual agency (agent for the buyer and seller) and transaction coordinator (an agent not representing anybody's interest).

In addition, throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. You should read its contents each time it is presented to you, considering the relationship between yourself and the real estate agent in your specific transaction.

When you work with a real estate agent in the state of Michigan, it is very important for you to understand the differences in the types of agency relationship you may have with your Realtor®. Please select a type of agency below to view its description:

. Buyer Agency
. Seller Agency
. Dual Agency
. Transaction Coordinator
.
. Agency Disclosure Form
(Official agency disclosure form provided by the Michigan Association of Realtors)
.
Buyer Agency - Working with a Buyer's Agent
A selling agent (the agent working with the buyer) can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:

To the Buyer:
.
1 A fiduciary of utmost care, integrity, honesty and loyalty in dealings with the Buyer.
.
To the Buyer and Seller:
.
2 Diligent exercise of reasonable skill and care in performance of the agent's duties.
.
2 A duty of honest and fair dealing and good faith.
.
3 A duty to disclose all facts known to the agent materially affecting the value or desirability of property that are not known to, or within the diligent attention and observation of, the parties.

An agent is not obligated to reveal to either party any confidential information obtained from the other party which does not involve the affirmative duties set forth above.

Seller Agency - Working with a Seller's Agent
A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of the agent has the following affirmative obligations:

To the Seller:
.
1 fiduciary of utmost care, integrity, honesty and loyalty in dealings with the Seller.
.
To the Buyer and Seller:
.
2 Diligent exercise of reasonable skill and care in performance of the agent's duties.
.
2 A duty of honest and fair dealing and good faith.
.
3 A duty to disclose all facts known to the agent materially affecting the value or desirability of property that are not known to, or within the diligent attention and observation of, the parties.

An agent is not obligated to reveal to either party any confidential information obtained from the other party which does not involve the affirmative duties set forth above.

Dual Agency - Working with a Dual Agent
A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. This will occur in situations where the same agent represents both buyer and seller in a transaction or when a brokerage firm has 2 agents involved in the same transaction - one who is working with the buyer and one who is working with the seller.

In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:

1 A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Seller or the Buyer.
.
2 Diligent exercise of reasonable skill and care in performance of the agent's duties.
.
2 A duty of honest and fair dealing and good faith.
.
3 A duty to disclose all facts known to the agent materially affecting the value or desirability of property that are not know to, or within the diligent attention and observation of, the parties.

In representing both Seller and Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.

The above duties of the agency in a real estate transaction do not relieve a Seller or a Buyer from the responsibility to protect their own interest.

You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.

Transaction Coordinator
A Transaction Coordinator is a licensee who is not acting as an agent of either the Seller or the Buyer, yet is providing services to complete a real estate transaction.The Transaction Coordinator is not an agent for either party and therefore owes no fiduciary duty to either party.

The Transaction Coordinator is not the advocate of either party and therefore has no obligation to "negotiate" for either party. The responsibilities of the Transaction Coordinator typically include:

1 Providing access to and the showing of the property.
.
2 Providing access to market conditions.
.
3 Providing assistance in the preparation of a buy and sell agreement which reflects the terms of the parties' agreement.
.
3 Presenting a buy and sell agreement and any subsequent counteroffers.
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3 Assisting all parties in undertaking all steps necessary to carry out the agreement, such as the execution of documents, the obtaining of financing, the obtaining of inspections, etc.

Buyer's Guide Next Topic: 10 Steps to Buying

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  Steve Hatfield
REALTOR® ABR, CRS, e-PRO Certified
CENTURY 21 Curran & Christie
25636 Ford Road
Dearborn Heights, MI 48127
Office: (313) 274-7200
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Licensed Realtor® Since 1987 (#6501221773)
realtor Accredited Buyer Representative Certified Residential Specialist e-PRO

Steve Hatfield, Realtor® provides professional real estate / home buying services to buyers and sellers in Dearborn Michigan, Dearborn Heights Michigan, the Wayne County MI (Southeast Michigan) communities of Livonia, Canton, Redford, Westland, Garden City, Plymouth, Northville and the Oakland County cities of Farmington / Farmington Hills and Novi Michigan.

Equal Housing OpportunityIn accordance with the law, the properties, real estate services and homes for sale featured on this web site are offered without respect to race, religion, color, creed, national origin, sex, physical limitations / disabilities or familiar status.

REALTOR® is a registered collective membership trademark that identifies a real estate agent / professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict code of ethics.

Century 21 Real Estate Corporation © and sm trademark and servicemark of Century 21 Real Estate Corporation. Equal Housing Opportunity. Each office Independently Owned and Operated.

Copyright © 1996 - Steve Hatfield
COPYRIGHT NOTICE:.
Graphics and content may not be reproduced or copied in any way with out written permission from Steve Hatfield.