More often than you’d expect, homeowners refer to the person
they bought their insurance from as their agent. It sounds reasonable but it is
definitely not accurate. That person is the agent of the insurance company and
they legally represent the company, not the customer. Even an independent agent
who can place a policy with different companies is still an agent of the
company.
A mortgage officer, in most cases is an employee and
represents the company. And the same is true for a title or escrow officer.
It’s important to understand the actual relationship to know what you can
expect from them. Any businessperson who wants to stay in business must treat
their customers fairly and with a high degree of service. As a customer, you
should be able to reasonably expect honesty and accountability. The difference
is that employees owe their loyalty to their employer and agents owe their
loyalty to their principal.
An agent owes more than just honesty and accountability. The
principal can expect complete disclosure, obedience, loyalty, reasonable skill
and care and confidentiality from their agent. This advocacy is very beneficial
during the buying or selling process to coordinate all aspects of the
transaction. The agent can bring valuable experience to your side of the
transaction to provide confidence that your best interests are being
represented from start to finish.
Most states have a recognized procedure for the real estate
professional to create a formal relationship between themselves and a buyer or
seller. This requires a fiduciary/statutory responsibility that places the
principals’ interests above the agent’s own personal interests.
In Massachusetts real estate brokers and salespeople/agents
are required to provide consumers the Massachusetts Mandatory Licensee-Consumer
Relationship Disclosure form at the first personal meeting with you to discuss
a specific property. The form explains the types of agency an agent can
provide. Although, this has been mandatory for years, many buyers who have
looked at properties with other agents often tell me they have never seen the
form! Consumers have a right to know who an agent represents.
Additionally, while a home seller is required to sign a written agreement in order to list their home for sale with a REALTOR (member of the National Association of Realtors), it is also in a buyer's best interest to have a written agreement with an agent who is going to represent them as a buyer agent. It clarifies expectations so there are no surprises or misunderstanding about responsibilities and makes for a less stressful transaction. Click for more information about buyer agency
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About the author: Marilyn Messenger is a local real estate broker
associated with Andrew Mitchell and Company, Concord. She has been representing
buyers and sellers in Concord, Wayland, Sudbury, Maynard, and the towns west of
Boston since 1993. She is a Certified Residential Specialist (less than 4% of
Realtors have achieved the CRS® designation), an Accredited Buyer
Representative and is an active member of the Real Estate Buyer Agency Council.
Messenger is also a Certified Luxury Homes Marketing Specialist and a Million
Dollar Guild Member. Visit www.MarilynMessenger.com
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