Who Do Real Estate Agents Represent
In A Real Estate Transaction?
Arkansas
law requires real estate agents to clearly disclose to all parties
in a real estate transaction which party(s) he or she is representing. Real Estate
Agents typically
represent Sellers but can also represent Buyers as well as both Buyers and
Sellers. Information about the different types of real estate representation
practiced in Arkansas is listed below. You may be asked to sign an Agency
Representation Disclosure Form to confirm that the Real Estate Agent identified
on the form disclosed to you before you signed any document related to the
transaction who he or she is representing in a real estate transaction.
What
Does It Mean to Represent A Seller?
A real estate agent who
enters into an agreement to sell property for an owner is known as the
“Listing Agent” or “Agent for the Seller.”
A Listing or Seller’s Agent represents the Sellers in the transaction.
That means that the Listing or Seller’s Agent may assist the Buyer who
is not represented in purchasing the property, but the Listing or Seller’s
Agent’s primary duty is to protect and promote the interests of the Seller. As
a Buyer not represented by a Real Estate Agent
you should keep any information that may place you at a disadvantage in
negotiations confidential and undisclosed to the Seller or the Seller’s Agent
since that Seller’s Agent has a duty to pass that information on to the
Seller. Confidential information
may include the Buyer’s real estate needs or motivations, the highest price
the Buyer is willing to offer, negotiating strategies or tactics, or financial
situation.
What Does It Mean
to Represent A Buyer?
A real estate agent who
enters into an agreement to only represent the Buyer in a real estate
transaction is known as the “Buyer’s Agent.”
A Buyer’s Agent represents the Buyer in the transaction.
That means that the Buyer’s Agent may assist the Seller who is not
represented in selling the property, or deal with the Seller’s Agent, but the
Buyer’s Agent’s primary duty is to protect and promote the interests of the
Buyer. As a Seller not represented
by a Real Estate Agent you should keep any information that may place you at a
disadvantage in negotiations confidential and undisclosed to the Buyer or the
Buyer’s Agent since that Buyer’s Agent has a duty to pass that information
on to the Buyer. Confidential information may include the Seller’s reason or
motivation for selling, the lowest price the Seller will accept, negotiating
strategies or tactics, or financial situation.
What Does It Mean to
Represent Both Seller and Buyer?
A Real Estate Agent who enters into an agreement
to represent the Seller and also enters into an agreement to represent the Buyer
in the same transaction is known as a “Dual Agent.”
A Dual Agency most frequently occurs when a Real Estate Agent or Agents
within the same real estate firm represent both Seller and Buyer in the same
transaction. Both Seller and Buyer
must have given their written consent to such dual representation prior to or at
the time of execution of any Agency Agreement, Listing Agreement, or Real Estate
Contract. Both Seller and Buyer
should be aware that a possible conflict of interest may exist in this type of
representation. A Dual Agent limits the duties described above in
representing the Seller and Buyer by written agreements found in the Agency
Agreement, Listing Agreement, or Real Estate Contract.
For instance, when representing both Seller and Buyer the Dual Agent
would not disclose to one party confidential information obtained from the other
party.
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