Agency Law - Who Represents Whom
Agency Law - Who Represents Whom**
In a routine real estate transaction, real estate agents normally represent the party who has signed an agreement with them to market their home, i.e. the Seller. It is important that you, as a purchaser of real estate, fully understand that all Realtors legally represent the seller, and must protect the seller's best interests at all times. Realtors have a responsibility to you to be honest and ethical in presenting property to you and are required to divulge all KNOWN facts and defects about a property in order for you to make an intelligent buying decision. However, at no time can they give you any information detrimental to the seller, and they must pass on to the seller any information they have about you, such as your willingness to pay more for a property than your offer indicates. You may, however, enter into a written agreement with the Agent to have him or her act on your behalf. This is called Buyer Agency or buyer representation.
In my business I choose to offer Buyer Representation, and will specifically represent you, as my client, in the buying process, if you wish. As a member of the Real Estate Buyer's Agent Council (REBAC), I am skilled in providing excellent representation for buyers. The law requires that we have a written agreement, stating our mutual obligations. Under such an agreement, we have a legal duty to divulge to all parties that we are working under a "buyer agency" agreement. Under such an agreement, your interests will be represented. Costs are typically paid from the sellers' funds at closing.
**Alabama Real Estate Law requires that both buyers and sellers of real estate sign an Agency Disclosure Form.