LEAN ON US... LEWIS & HIGHTOWER... 434-996-6613
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We believe it is important that all parties to a real estate transaction --Buyers and Sellers -- should understand the unique
and valuable role that real estate brokers and their salespersons
play in the marketing of real estate. That role has been defined
over the years by both law and custom. It may or may not be the same
in Virginia as it is in some other states. The following is intended
to give you a brief explanation of your options. When dealing with a REALTORŪ in a real estate transaction, you are usually either a client or a customer of that REALTORŪ. A client is someone who has formed a brokerage relationship with a REALTORŪ, usually by signing a contract, and the REALTOR is their agent. Parties who do not have a brokerage relationship with the REALTORŪ are customers. When acting as a standard agent, a REALTORŪ has certain duties and obligations. The basic duties are defined in Virginia law (see especially Section 54.1, Chapter 21, Article 3), and additional duties can be created by a brokerage agreement with a client, usually in writing. REALTORSŪ are also governed by a strict Code of Ethics. A REALTORŪ you choose as your agent will fully represent your best interests. An agent owes first allegiance to his or her client. There are some limits when an agent has two clients in the same transaction (see overlapping brokerage relationships). Until recently, brokerage relationships with an individual REALTORŪ also bound the other agents of the same real estate company. Now, agents within the same firm may represent opposing parties to a transaction, provided that each party is notified ( see "Designated Dual Representation").
There are limits on what an agent must tell a
customer. Customers may wish to look to other sources for information important to their decisions. The REALTORŪ you choose as your agent will fully represent your best interests. An agent owes first allegiance to his or her client. STANDARD SELLER REPRESENTATION | ||||||||||||||||||||||||
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If you are a prospective buyer or tenant who is dealing with a REALTORŪ who represents the seller or landlord, remember that you are a customer of that REALTORŪ and not a client. A seller's representative can still provide valuable service to customers - showing property, preparing and presenting any offers and counteroffers, comparing financing alternatives, and disclosing known adverse material facts about the condition of the property. All agents in a transaction must be truthful with all parties, but the seller representative's highest duty is to the client. Prospective buyers and tenants have realized in recent years that they may want to have a REALTORŪ of their own representing them in a transaction. They do this by forming their own brokerage relationship, usually by written agreement, with a REALTORŪ who becomes their agent and owes them the duties of a standard agent. A representative for the prospective buyer or tenant can freely advise the buyer-client about all aspects of the property. A seller dealing with a buyer's agent should remember that in this relationship, the seller is the customer and the REALTORŪ is working for the buyer. In many cases, the listing agent will share the commission with the buyer's representative, but that doesn't diminish the buyer representative's obligation to the buyer. The increasing popularity of buyer representation has increased the number of transactions where a REALTORŪ might have overlapping brokerage relationships. This happens when a buyer or tenant client of a real estate agent wants to purchase or rent one of that agent's listings. As a result, the REALTORŪ has legal and contractual obligations to both clients. In dealing with these situations, there are two ways for the transaction to proceed: Virginia Law allows a real estate firm or salesperson to represent both sides of a real estate transaction as long as all the parties give consent. Because the firm and agent have a legal obligation to represent both parties, and may know confidential information about one party of value to the other party, there are limits on what the company or salesperson may do in dual representation cases. The company or salesperson must not disclose information that is confidential or would create a negotiating advantage for either client, such as whether the seller will take a lower price, or the buyer will pay a higher price. Generally, information about the motivations of the parties must also be kept confidential. In effect, dual representation limits the REALTORŪ to a neutral role. If two agents from the same firm are representing opposing parties in a transaction, a supervising broker in the firm will be designated to oversee the transaction. Each of the respective agents will then be able to offer full service to his or her client. The supervising broker will need to maintain the confidentiality of any client information which could be of value in negotiations. The two agents must not share confidential information with each other.  so much to understand!
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 Lynda Lewis, REALTORŪ 434-996-6614 ABR, GRI, e-PRO |
for all Charlottesville & Albemarle VA exclusive homes ABR, GRI, e-PRO email: lewis@philhightower.com |
