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When shopping for a home it is important that you feel you can trust the Agent you are
working with. After all, this is someone you may be sharing your personal, financial,
and confidential information with as you work together in the home buying process.
How is this level of trust established? How can you be sure that they have your
best interest in mind, and that they will keep your information confidential?
The answer is: you don't, unless they represent you as your Buyer's Agent.
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In Massachusetts, agents can represent either the seller or the buyer.
When a seller lists their home through a real estate company, an agent from that
company works with them as the listing agent for their property. The listing agent
represents the seller, and the seller agrees to pay them a commission, which comes
out of the proceeds of the sale. Potential buyers for the property may contact the
listing agent directly, but they need to keep in mind that the listing agent works
for the seller, and has the seller's best interest in mind when negotiating an offer.
They are bound do disclose all information they gather about the buyer to their seller
client.
On the other hand, a potential buyer has the option of working with an agent of their
own, who will have THEIR best interest in mind when negotiating, and who is bound to
keep their buyer client's information confidential. When both parties are represented
by their own agents, this is called a co-broke transaction. It is the most common
type of transaction in MA real estate. When a co-broke situation occurs, this
commission gets divided between both agents, therefore most often it costs a buyer
nothing to hire their own agent. These same funds would otherwise have gone to the
listing agent entirely.
A Buyer's Agent provides a client-level service to the buyers they work with. This level of service includes fiduciary duties such as Loyalty, Full Disclosure, Confidentiality, Reasonable Care and Diligence, and Accounting.
- A Buyer's Agent is legally bound to represent the Buyer's interest exclusively.
- A Buyer's Agent assists the Buyer in writing and negotiating offers in the Buyer's favor.
- Buyer Representation gives the Buyer the same level of loyalty and service that the seller receives from their Listing Agent.
- A Buyer's Agent cannot disclose any confidential or financial information about their client unless they have written permission from their Buyer client.
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This type of relationship is established between the Buyer and the Agent by
completing the Mandatory Licensee Consumer Relationship Disclosure.
This form is mandatory for all Real Estate licensees to be presented
at their first meeting with a consumer. The purpose of this disclosure is to
inform the consumer about their options when working with a real estate agent.
For a copy of this form, or to learn more about Buyer Agency, please call us at
(866) 641-7824 - Toll Free
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