This disclosure explains the different agency relationship/representation that is possible when a home buyer or seller is entering into a contract with a real estate broker. In California there are 3 types of agency relationship: Seller’s Agent (listing agent), Buyer’s Agent (selling agent) and Agent Representing Both Seller and Buyer (dual agency). Some states have eliminated the dual agency and have Transaction Brokers who provides limited agency relationship.
The California real estate broker owes fiduciary duty to her client and what those duties are depends on what type of agency relationship she has with her client(s). List of fiduciary duties:
- Utmost care, integrity, honesty and loyalty
- Loyalty – to look out for the client’s best interest over all other parties, including the broker
- Confidentiality – do not disclose any information that could be harmful to the client, even after the relationship has terminated.
- Obedience – To obey all lawful instructions or otherwise resign
- Full Disclosure – Disclose all material facts related to the property
- Accounting for all funds – Holding in trust all deposits given to the broker
- Diligent exercise of reasonable skill and care in performance of broker’s duties
For the foreign home buyer, it is important to understand the fiduciary duties a real estate broker owes to her during a real estate transaction. Furthermore, the buyer needs to determine what type of relationship/representation she wants.
For further clarification of California’s Disclosure Regarding Real Estate Agency Relationship or for a copy of the disclosure, please contact Dee Marie Fisher at 619-742-0046 or DeeMarie@SellingProperties.com