Quote:
Originally Posted by retiredguy123
Being a fiduciary and being an agent are two different things. An agent is paid to represent a client in selling a house. It is a legal agreement between the seller and the broker that is clearly defined in the listing contract. The buyer is not a party to the listing contract. The seller expects the broker to act in his/her best interest and find a willing buyer for the best possible price without violating the legal ethical standards. For example, if a buyer tells the broker that they want to offer $300K for a house, but that they are willing to pay $350K, the broker would be obligated to convey that information to the seller, as long as the buyer has not been deceived about the broker/seller relationship. But, being a fidicuary means that the broker must treat all parties in a fair and honest manner. So, if the buyer asks the broker how long the house has been on the market, the broker cannot lie and must provide an honest and accurate answer. The only recourse the buyer would have against a broker would be if the broker violates an ethical or fiduciary obligation established by Florida law. But, the seller can sue the broker for breach of contract if the broker fails to represent the seller adequately when negotiating the sales price or other terms of the sale. The difference is that the seller has a legal and binding contract with the broker, but the buyer has no contract. This is because the seller has agreed to pay a cash commission to the broker to be their agent, but the buyer has not agreed to pay anything. So, there is no contractual relationship between the buyer and the broker, and the broker or any licensed agent they interact with is not their agent. The only thing that a buyer is entitled to expect is that all licensed agents they deal with will follow the Florida laws of ethics.
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excellent explanation.
Thank you.
if you were buying (and perhaps you have done this) a house in TV, listed by The Villages (VLS) listing service, would you be totally comfortable as a buyer, just dealing with VLS agent(s), and feel your interests were well looked after, or would you have someone with professional knowledge, either a non VLS real estate professional, or your own lawyer (all paid for by you) reviewing the process and legal documents?
And if you are a real estate professional yourself, would your recommend someone who is not a real estate professional to trust the process without a RE professional of their own reviewing everything?