A licensed real estate professional
who has obtained a broker's license (which entitles them to operate a
real estate brokerage). By default, a real estate broker of this kind
has already met the requirements of "salesperson" or "agent" licensure.
A real estate broker can still be designated as such without
owning a real estate brokerage.
Services provided by
real estate agents to
Customers
The customers of real estate brokers
are the sellers and buyers of the real estate to be sold. The sellers
and buyers themselves are the principals in the sale and real estate
agents are their agents. However, although a real estate agent commonly
fills out the real estate contract form, typically real estate agents
are not given power of attorney to sign the real estate contract or the
deed; the principals and seller sign these documents, respectively.
The respective real estate agents
put themselves down on the contract as the agents for each principal so
that they may be able to collect their commission. The use of a real
estate broker is not a requirement for the sale or conveyance of real
estate or for getting a mortgage loan or a refinance loan from a lender;
although once a broker is used, the lender or its attorney will require
that they be paid.
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Services provided by real
estate agents to
Sellers
Upon signing a listing contract with
the party wanting to sell the real estate (seller), the real estate
brokerage (agency) attempts to earn a commission by doing the
following for the seller:
Find buyer(s) for the real estate the seller wants to sell, especially
financially qualified buyers who are willing to pay the listing price or
close to it. In the United
States, the law requires the real estate agent to forward all offers to
the seller for consideration or review. To help accomplish this goal of
finding buyers, a real estate agency commonly does the following:
- The real estate property is listed
for sale to the public, often on a Multiple Listing Service in
addition to any other ways of listing the property.
- Preparation of papers describing the
property for advertising, pamphlets, open houses, etc.
- Often a "For Sale" sign is placed on
the property indicating how to contact the real estate agent.
- Advertising the property.
Advertising is often the biggest outside expense in listing a
property.
- In some cases, holding an Open house
to show the property
- Being a contact person available to
answer any questions about the property and to schedule showing
appointments
- Ensuring buyers are prescreened so
that they are financially qualified to buy the property; the more
highly financially qualified the buyer is, the more likely the closing
will succeed.
- In some cases, provide the seller
with a real property disclosure form and other forms which may need to
be filled out
Negotiates price on behalf of the sellers. The seller's agent acts as
a fiduciary for the seller. This may involve preparing a standard real
estate purchase contract by filling in the blanks in the contract
form.
- In some cases, holds an earnest
payment cheque in escrow from the buyer(s) until the closing. The
closing is the buyer/seller meeting where the real estate property is
actually bought/sold and the title is conveyed by a deed.
Services provided by
a realestateagent to
Buyers
A real estate brokerage (agency)
attempts to do the following for the buyers of real estate:
Finding real estate in accordance
with the buyers needs, specifications, and affordability
Taking buyers to and showing them
properties available for them to buy
When deemed appropriate, prescreening
the buyers to ensure they are financially qualified to buy the
properties shown
Negotiates price on behalf of the
buyers and prepares standard real estate purchase contract by filling
in the blanks in the contract form. The buyer's agent acts as a
fiduciary for the buyer.
Services provided by
a realestateagent to both
Buyers and Sellers
If the same agent represents both the
buyer and the seller, the agent is typically considered a dual agent.
Special laws/rules often apply to dual agents, especially in
negotiating price.
Additionally, some real estate agents coordinate various aspects of
the closing.
Real estate agents typically do not provide title service such
as title search or title insurance, do not conduct surveys or formal
appraisals of the property such as those required by lenders, and do
not act as lawyers for the parties, although they may "coordinate"
these activities with the appropriate specialists. Regardless of
whether a real estate agent assists sellers or buyers of real estate,
negotiation and financing skills are important.
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