Agency In Real Estate In New Jersey, the role that any realtor can take is very specific in scope and responsibilities. Part of our duty as licensed professionals is to make sure you understand the state laws of agency. When we meet, we'll give you a pamphlet that explains real estate agency in greater detail. Part of our initial meeting is a one page form that defines which of the four relationships we'll have.
There are four types of agency relationships:
Buyer's Agent: As a buyer's agent, we strictly WORK ONLY FOR THE BUYER, only promote and negotiate for the buyer's interests, and any information we learn is relayed to the buyer. Whenever you work with an agent, make sure you understand who he or she represents.
Seller's Agent: As a seller's agent, we strictly WORK ONLY FOR THE SELLER, only promote and negotiate for the sellers's interests, and any information we learn is relayed to the seller.
Dual Agent: As a dual agent, we represent BOTH the buyer and the seller and may not disclose any information that would give an advantage to either party without the other party's consent. This might happen (as an example) If you choose us as your buyer's agent and choose to make an offer for a home that is also our listing (where we represent the seller for the sale of his home). If that were to happen, we would represent both parties and would be a disclosed dual agent. We would need your authorization to act in that capacity.
As a dual agent, we are not legally permitted to put one party's interests ahead of another. If the sellers were getting a divorce, as an example of 'inside' information that would give a buyer a negotiating advantage, we would not be allowed to divulge that to our buyer. Or if a buyer's lease were to expire so his back was against the wall, we could not disclose that to the seller.
Under no circumstance would we ever disclose anything that would be against YOUR best interests. If something material to the transaction were discovered (such as a leaky roof, or the inability to deliver a clear title), you would be informed right away! This is the legal obligation of EVERY agent, whether they represent one party or the other.
Transaction Broker: This is very unusual in residential transactions in our area. A transaction broker represents neither party and anything may be disclosed to the other party.