retiredguy123 |
02-07-2023 04:59 PM |
Quote:
Originally Posted by RiderOnTheStorm
(Post 2184724)
Not to beat a dead horse, but an agent cannot have fiduciary responsibilities to BOTH the seller and buyer. This is a blatant conflict of interest. Probably why they are contractually considered "Transaction Agents", where the primary objective is to close the sale. You can contract for sole representation, but it is a different contract that is less frequently used. At least that's how it was three years ago.
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Not true. To be a fidiciary only means that you are required to treat both the buyer and seller in a fair and equitable manner and to be ethical. That is required of all licensed agents by state law, or they can lose their license. But, the agent represents the seller, not the buyer, as their agent in the listing contract, not by state law. Being an agent of the seller is not the same thing as acting in a fiduciary manner towards both buyer and seller. For example, if a buyer asks the agent if the house has a roof leak, the agent must tell the truth as they know it. They cannot lie. But, if the buyer tells the agent that they are willing to pay more than the listed price, the agent has a duty to convey that information to the seller in order to negotiate the best price. The term "transaction agent" typically only come into play after a sales contract has been signed. But, while negotiating a price, the agent represents the seller, not the buyer, because the listing contract has only two parties, the agent and the seller. The buyer is not a party to the listing contract, and does not pay the sales commission. The seller pays the commission, and can sue the agent for improper representation.
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