Exactly what is Agency?
Dual agency is outlawed in numerous states, however, it is legal in South Carolina. The issue with 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 it as single agency. An easy and simple method to understand 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 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 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 in 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. 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 single agency representation over that of transaction broker. Nevertheless, there are some great reasons why a single representative might have to transition from 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 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 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 their knowledge of either parties intentions. In a single agency relationship, if the buyer’s representative (from another company) shows his buyer will pay more, 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.
At Full Potential Real Estate we always work for the best solution for our clients. Call us today when you have real estate questions – whether you are buying or selling a home.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577