Dual agency is outlawed in numerous states, however, it is legal in South Carolina. The issue with a dual agency is that vague reference to agency. The word agency in real estate terms means that the Myrtle Beach real estate agent participates in a relationship with a client to whom he owes fiduciary responsibility, also referred to as loyalty, obedience, and confidentiality. She is dealing on behalf of that customer in all matters relating to a specific property transaction. That is the meaning of agency.
In South Carolina, this is referred to as a single agency. An easy and simple method to understand a single agency is this: the realtor is acting as a representative of the client in any transactions, whether it is in the role of a buyer’s agent or a seller’s agent. Throughout the entire transaction process, the agency operates in the best interest of their client as if they were the client themselves.
The Problem with Dual Agency
Dual agency is simply what it states it is: an attempt to act in both the buyer and seller’s best interest at the same time. How can an agent not be in a conflict of interest in this situation? Naturally not, it would be impossible to act in both the buyer and seller’s best interests at the same time. That is why the dual agency is disallowed in the majority of states. Dual agency is legal in South Carolina as long as there is informed and written consent from all parties prior to entering into negotiations.
So What Is A Transaction Broker?
That is not to say that a representative cannot deal with the transaction for both the buyer and the seller. In South Carolina, we have a transaction broker also known as a limited agency classification. While it may seem like a dual agency, it is not. In this situation, the agent’s only loyalty is to the transaction and has not entered into a relationship as a trustee with either the buyer or the seller. The Myrtle Beach real estate agent is a neutral party between the buyer and the seller. Nevertheless, he owes both entities limited confidentiality. This means he is not permitted to inform the purchaser that the seller will take less or let the home seller know that the potential purchaser would be willing to offer more without express permission for the buyer or seller.
There are numerous Myrtle Beach property agents and brokerage companies that work strictly as transaction brokers. Real Estate agencies that prefer single agency say that working as transaction brokers avoids confusion and potential difficulties in buying a home. The representative is not likely to forget what his role is if it is the exact same all the time. It likewise prevents possible lawsuits, which is potentially the better reason some brokerage companies avoid single agency even in scenarios where the law enables it.
Why Choose Transaction Broker over Single Agency?
It appears a no-brainer that a customer would want to have a single agency representation over that of the transaction broker. Nevertheless, there are some great reasons why a single representative might have to transition from a single agency to end up being a transaction broker:
- The customer (a buyer) wants to acquire a home that is currently listed with his representative or another representative of the same brokerage company.
- The customer (a seller) decides to offer his home to a buyer who was introduced to his home by his listing representative or another representative of the exact same brokerage firm.
- The law acknowledges that each agent of the company may have special knowledge and so the firm is unable to offer confidentiality to the client.
- In fiduciary relationships, the client has agency with the brokerage firm which the agent works for, so two representatives of the same firm cannot provide a single agency, just a transaction broker plan.
The lack of “complete disclosure” under the Transaction Broker relationship ought to not trouble the client. It does not imply that the transaction broker can withhold information from you. Again, the notification plainly says, “Divulging all facts that materially affect the value of the domestic real estate and are not easily observable to the buyer.” What it does imply is that the agent is not under obligation to inform you of their knowledge of either party’s intentions. In a single agency relationship, if the buyer’s representative (from another company) shows his buyer will pay more, a single agency needs the seller’s listing agent to inform the seller of that when he provides the buyer’s offer to him. As a transaction broker, the agent is not even allowed to go there without authorization, even if he has that privileged details.
Should You Use A Transaction Agent?
As mainly a buyer’s agent, I like having the ability to provide my client 100% of my attention, however, there are instances when I have served my buyer or seller well as a transaction broker. For example, a situation where I had listed a home and one of my associates at the office found a buyer. A couple of times, an agent in the workplace had a listing that was perfect for my customer. In each case, the transaction was carried out to the fulfillment of both parties.
I believe that the very best method to make sure that your transaction goes smoothly and for you end up as a pleased client is not in the agency relationship. It is by picking a reliable company and a skilled agent to deal with at first. The agent does not have to have years of experience, however, should have the resources offered to go to, if needed, in order to assist you through any transaction. My primary goal as a representative in the Myrtle Beach area is for you to be absolutely pleased with our services. We wish to retain you as a customer for several years to come. We likewise hope that you are so pleased you refer your friends and family also. That is the lifeline of a Myrtle Beach Real Estate Agent’s business such as with Full Potential Real Estate.
REAL ESTATE AGENCY SPECIALISTS: THE BUYER’S AGENT
Never before has the role of experts worldwide in real estate being more crucial. With purchasers and sellers requiring more services, the industry has seen a surge of agents who focus on either the representation of sellers or buyers. These specialized representatives can offer a wealth of services and maintain complete impartiality during the sales procedure as there is just one client to represent.
Historically the sales deal and the concerns of the purchaser were the purviews of a single realtor. However, as the market has progressed so have the needs of each party and so the concept of the buyer’s agent evolved. Homebuyers have some very special needs, and specifically, they have to feel that those needs are seen to. Listing representatives are agents of the home’s owner and the role they have the main responsibility to that owner. How could they effectively look after the needs of an interested purchaser also?
So what is it that a Myrtle Beach buyer’s agent does? Primarily the purchaser’s agent will begin with the location of ideal residential or commercial properties for their customers. This is usually based upon a list of requirements and desires that the client has communicated to the representative. They will then arrange viewings and evaluate their findings with their clients and help in picking a good candidate for a deal. This will be based on the wealth of neighborhood details that a purchaser’s representative commands. As specialists, they are professionals on the offered location which is important in the education of clients on the areas that they are considering. As soon as a home is selected, the purchaser’s agent goals change considerably, developing into an overseer-negotiator role. They will generally collaborate on the assessments and perform the settlements with the listing representative. This includes the execution of the buyer’s desired changes and the closing of the real contract.
There is an art to representing a purchaser. It is a role that has become ever more important in a market where client service is the single essential thing that an agent can offer. If you are in the market for a home then the buyer’s representative is the good friend that you need to make sure that you are provided the service that you are worthy of.
- What is included in a Buyer’s Agent Agreement?
- Most but not all agreements will cover the following for the agent:
- A non-disclosure that covers the client’s financial data
- The agent will do their best to negotiate the best price for the buyer – not the seller
- The agent must disclose if they are working with another buyer that is interested in the same residential property.
- The agent will show all properties in which the buyer has an interest and that fits within their budget and buying criteria.
Work with the buyer to connect with service providers such as utility companies, home inspectors, lenders, and home warranty companies – any connection that will make the closing go smoothly and on-time.
- The agreement also spells out the responsibilities of the buyer:
- A home buyer must work with their buyer’s agent exclusively
- A buyer will not give personal or financial information to another agent
- Buyers will not call listing agents to see their properties, even if they believe they are saving the buyer’s agent effort and time.
- The home buyer needs to clearly define any deal-breakers or must-haves to assist the buyer’s agent in their research efforts to find the very best fit for your dream home.
Call Full Potential Real Estate today to schedule a convenient time to discuss your dream home and explore the possibilities.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577