Real Estate Brokers And Fiduciary Duty

Posted on 20 May, 2022 by prasanjitbd

Real-estate brokers and sales agents are not all created equal. The glaring difference between the two could be the difference in licensing.

A broker is licensed to negotiate the sale of real property and represents the principal (seller or buyer). A sales person works solely for the broker, representing the respective principal underneath the guidance and license of the broker. But even aside form the technical licensing issues, it's important to appreciate who's representing you.

In our article titled, Real Estate Agents Must Have These Qualities, we stated many of the characteristics of an excellent real-estate agent. In this short article, we're showcasing the true estate broker's legal fiduciary duties. Many real-estate investors speak about "finding an excellent realtor," or one who is knowledgeable about investment properties. That's certainly recommended within real-estate investing circles, since it should be.

However, there's something that numerous real-estate investors as well as regular home buyers don't consider and that's the fiduciary responsibilities of the true estate broker. Most real-estate brokers generally represent sellers because that's where nearly all the amount of money lies. Sellers own the true property and want to market, most buyers have many hurdles to overcome and don't own anything.  real estate agent in campbelltown

So once we look at "finding a real-estate agent" to find properties, do "comps", etc., where do we stand, because the investor/buyer? Until you have a Buyers Agency with the true estate broker, no real matter what they tell you or which kind of information they obtain, the most important question remains, "where do their fiduciary responsibilities lie?"