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AUBURN AL REAL ESTATE REPRESENTATION FACTS

Weichert Realtors Porter Properties
May 17, 2012

Auburn AL Real Estate Buyers and Sellers have Choices

Real estate agents in Auburn AL must present buyers and sellers with the Real Estate Brokerage Service Disclosure. This document provides valuable representation information.

What are your choices as an Auburn AL real estate buyer or seller?

Auburn Realtors at Porter Properties

Real estate can be a challenging and overwhelming process if you don’t understand the terms and jargon one would use when buying or selling a home. Hopefully by the end of this article, you as our potential customer/client will have a better understanding on how a Realtor® can represent you in an Auburn AL real estate transaction.

Alabama state law requires every real estate agent to inform you about the types of services a licensee can perform in representing you as a customer/client before the potential transaction ever takes place. They must present you with the Real Estate Brokerage Services Disclosure (RECAD) and educate you on the three primary types of representation. You then can elect to sign or not sign the RECAD. It is in no way a contract, the sole purpose of the document is to disclose the summary of services.

What are the three primary types of representation?

Seller’s Agency Agreement

A Seller’s agency agreement allows a Realtor® to represent only one party in a sale making the seller the client of the agent. Once entered into this relationship the Realtor® must be completely loyal and faithful to the client for the duration of the transaction. The agent can then provide advice and offer the seller his/her negotiation skills. During the terms of this agreement the agent agrees to become well informed about the seller’s objectives, provide comparable market analysis, assist the seller with pricing of their home, provide necessary advice to prepare home for showings, present all offers made on the property in a timely fashion, assist the client in negotiating favorable terms regarding offers, and assist with monitoring closing procedures and/or deadlines.

Buyer’s Agency Agreement

A Buyer’s agency agreement allows a Realtor® to represent only one party in a sale making the buyer the client of the agent. Upon signing the agreement the Realtor® must be completely loyal and faithful to the client for the duration of the transaction. The agent can then offer his/her negotiation skills and advise the client on the necessary steps to help ensure a closing will take place. During the terms of this agreement the agent agrees to assist the client in locating property acceptable to the buyer, assist in scheduling and showing available properties, assist in obtaining available information relative to desired properties, and provide assistance to the client in the preparation of offers for purchasing the property.

Transaction Broker Agreement

A Transaction Broker agreement allows the Realtor® to only assist one or more parties, who are then customers not clients, in a sale. By not signing into a buyer’s or seller’s agency agreement you are then by default entered into a transaction brokerage agreement for the duration of the real estate process. This is not a single agency agreement therefore the agent is limited on the services they can provide during the transaction. The Realtor is not allowed to advise or negotiate on the buyer or seller’s behalf. They are just able to provide the information and facts during the process. Some examples of what the licensee can do under transaction brokerage is provide information about properties, show properties, assist in making a written offer and provide information on financing.

Auburn AL Real Estate Standards

In addition to the types of representation a Realtor® can provide, licensees are held to a higher standard of business and code of ethics. Alabama law requires the following responsibilities on all real estate agents to all parties, no matter how the person is being represented.

  1. To provide services honestly and in good faith
  2. To exercise reasonable care and skill
  3. To keep confidential any information gained in confidence, unless disclosure is required by law or duty to a client, the information becomes public knowledge or disclosure is authorized in writing
  4. Present all written offers promptly to the seller
  5. Answer your questions as customer/client completely and accurately

Buying or selling Auburn AL real estate is possibly the biggest decision one can make for themselves or their families, and must not be taken lightly. It can be time consuming and sometimes detrimental to your lifestyle if not handled properly.

Realtors® understand the importance and severity of every real estate transaction and can help the process to go smoothly and assist Auburn AL home buyers and sellers to get the best price possible. Even though technology has made it easier to access information at your fingertips, a lot of the times the information may not be current or correct and having a real estate agent ensures you get the best possible service.

The Auburn Realtors® at Weichert, Realtors® – Porter Properties are ready and willing to answer any and all real estate questions, show property and help you buy or sell your Auburn AL real estate. Call us today for your FREE consultation.