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Seller Agency
In most all states, any agreement for brokerage services must be in writing and specifically state the agent's duties and relationship with the client. A seller typically enters into a 'listing agreement" with a real estate firm authorizing the firm to represent them in finding a buyer. The listing agreement will state the compensation the seller will pay the listing firm and it usually requires the seller to pay the firm a fee for its services no matter who finds the buyer.      

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Seller agent duties typically include:

  • Advise seller if property disclosure is required.
  • Advise seller of his/her duties.
  • Advise seller that the buyer has a 3-day right to terminate a sales contract when buyer does not receive the disclosure statement in a timely manner.
  • Agent must provide the seller with a copy of the disclosure statement.
  • Advise the seller that their agent must disclose to any potential buyer any material fact regarding the seller's property and assist the seller with correcting the disclosure statement if necessary.
  • Obtain the disclosure statement from the agent who is working with the buyer and deliver it to the seller.
  • If the agent is working directly with the buyer (as a dual agent), promptly deliver the disclosure statement to the buyer and have the buyer sign and date the form.  If the buyer has not been provided with the disclosure statement prior to making any offer, the agent needs to advise the buyer of his/her right to cancel any resulting contract.

The listing agents' firm may be a member of a listing service to expose the seller's listing to other agents.  Some of those other agents may be working as exclusive buyers' agents while others  may be working with buyers but still representing the sellers' interests as a "subagent".  With the seller's permission, the listing agent may share the commission with the buyer's agent and/or seller subagent. 

Switching  From a Seller's Agent to a Buyer's Agent 

Only in rare situations may a seller's agent "switch" to a buyer agent role.  He may do so only if  he has not received any confidential information about the seller.    In any event, this practice is generally discouraged in the industry.  An agent, who has received confidential information about the seller,  may not "switch" from seller to buyer agent unless the seller expressly agrees to the switch (usually in writing). 

 

 
         

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