Single Agency Flashcards

Single Agency Flashcards Referrals are the key to real estatelandlord's agent The single agent is an agent who represents only one party to the transaction. This other party could be

a:BuyerSellerLandlordTenant

They represent the traditional approach to real estate transactions and provide the "singular" benefit of a clear agency relationship. The single agent works for the client and with the customer.single agency co-op.Single agency co-op means that a brokerage ONLY deals with single agency relationships (one agent representing one client, buyer, or seller), but they serve both sellers and landlords, buyers and tenants.ad·ventthe arrival of a notable person, thing, or event."the advent of television" A tenant's agent, also known as a tenant representative, is most similar to a buyer's agent. The tenant's agent is a single agent who has agreed to represent the tenant's interests in a real estate transaction (to rent, not buy, a property). The tenant is the principal/client of the tenant's agent, and the tenant's agent owes all fiduciary duties to the tenant.The agency relationship between the tenant and the tenant's agent is documented in a tenant-broker agreement. The tenant's agent works for the tenant and with the landlord.A tenant's agent is very similar to a buyer's agent, but tenant's agents will need to have a slightly different area of expertise. They'll have to know the specifics of leasing agreements and tenant rights that wouldn't be as important for an agent acting only as a buyer's agent.Brokerages might choose to exclusively engage in only seller agency or only buyer agency. This means that the brokerage would only serve sellers or buyers, respectively.One advantage of doing this is that there would be no conflict of interest regarding fiduciary duties and the parties owed those fiduciary duties.That's why some brokerages may support only sellers or only buyers. However, this is a bit unrealistic! Many brokerages support both sellers and buyers; it's just better for business. Brokerages that serve only sellers or only buyers are missing out on half of the market. That's why many brokerages opt for single agency co-op.Single agencyan agency arrangement in which one agent represents one party in a real estate transaction; the party may be either a seller or a buyer. This is also known as exclusive agency For an agent supporting a seller or landlord, first substantive contact would probably take the form

of:Discussing confidential, and potentially compromising,

information with the sellerDrawing up a contract to sell or lease For an agent supporting a buyer or tenant, first substantive

contact would probably take the form of:Showing the buyer

or tenant a property Buyer's agents were part of the effort to clarify the agency representation issues that came to a head in the early 1980s.Up until that point, buyers did not have any representation in the transaction, even if they weren't fully aware of it.laws being what they were at the time, ALL agents were actually contractually bound to represent the seller's best interests. (Good to see those days in the rearview mirror!)The listing agent? Represented the seller. The agent that brought the buyer to the transaction?Represented the seller.Before the advent of buyer's agents, buyers entered into real estate transactions without

anyone looking after their interests. The buyer was treated as a customer by every agent involved.A landlord's agent is similar to a seller's agent. The landlord's agent is a single agent who has agreed to

represent the landlord's interests in a real estate transaction (to lease, not sell, a property). The landlord is the principal/client of the landlord's agent, and the landlord's agent owes all fiduciary duties to the landlord.The agency relationship between the landlord and the landlord's agent is documented in a listing agreement.The landlord's agent works for the landlord and with the tenant.tenant's agent

This agency relationship is documented with either a listing agreement or a buyer-broker agreement, depending on which side the single agent represents. Depending on who

single agents represent, they can look like:Seller's or

landlord's agentsBuyer's or tenant's agents Though each of these parties is distinct from one another,

there are some similarities:A seller is looking to put their

property in someone else's hands, hopefully making money off of the transaction. The same goes for landlords.A buyer is looking to procure a property for their use. The same goes for tenants.You might have guessed that a seller's agent gets compensated from the proceeds of the sale of the seller's property, but how a buyer's agent gets paid can be a little less obvious.The buyer-broker agreement, like the listing agreement, will spell out how that agent is to be compensated. Usually, it will indicate that the buyer's agent will look first to the seller's offer to cooperating brokers, via the MLS, for compensation but will hold the buyer responsible for any shortfall if the seller either fails to pay or pays less than the full amount the buyer agreed upon.But the buyer's agent should and will be paid.Buyer's agents are responsible for making the usual disclosures, but it is especially important for a buyer's agent to disclose the value of the property to the buyer.when a brokerage makes the decision to exclusively practice single agency, they are saying they will represent ONLY one side of the transaction. (Though a brokerage will likely represent more than one client at a time.) single agent Buyer's agents will typically do this with a competitive market analysis (CMA). A CMA is a report that compares the prices of recently sold or listed homes ("comparables") in order to estimate the market value of a similar property (the "subject property") located in the same area.Once the fiduciary duties have been established and a license holder obtains a new buyer-client, a buyer's agent

will be responsible for:Locating a suitable property for the

buyerNegotiating the best possible offer for the buyerPreparing the buyer for closing buyer's agentThe buyer's agent is a single agent who has agreed to represent the buyer's interests in a real estate transaction.This means they do NOT owe the seller fiduciary duties.The agency relationship between the buyer and the buyer's agent is documented in a buyer-broker agreement.The buyer's agent works for the buyer and with the seller.