Frequently Asked Questions:

1) I have heard Brokers use the term "Fiduciary Responsibility". What does that mean

2) What is "Buyer Representation" and how did the term originate?

3) Do all Brokers now represent Buyers?

4) What is "Disclosed Dual Agency"?

5) Is it best to deal with a Buyer or Seller Broker?

6) What is a Buyer Agency?

It means the Broker owes undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability to the consumer they represent. They must put that party's interests first and negotiate for the best price and terms for that consumer, known as their "client".

Buyer representation is when the broker owes the Buyer a fiduciary responsibility. It is the Broker's job to negotiate the best price and terms for their client, the "Buyer". In 1989, the National Association of REALTORS® initiated the requirement that Brokers, in writing, must inform consumers as to whom they represent. In years past, it was customary that Brokers represented the Seller in the transaction. Buyer brokerage grew from the Buyer's desire to have representation in the purchase of their property.

3) Do all Brokers now represent Buyers?

No. There are a variety of Brokers to choose from today. Consumers can choose from several options.

Seller's Brokers are brokers who solely represent the Seller. The Buyer and the Broker are not bound to each other contractually. The Broker owes the fiduciary responsibility to the Seller who is the "client". The Buyer is the Broker's "customer".

Buyer's Brokers represent Buyers solely, in other words, they owe the fiduciary responsibility to the Buyer and are contractually obligated to each other. The Buyer is the "client", and the Seller is now the "customer" of the Broker.

The consumer today may also deal with a Broker who may represent both parties in the transaction. In Western Massachusetts, this Broker is considered a "Disclosed Dual Agent".

4) What is "Disclosed Dual Agency"?

Most Brokers list property on the market for Sellers, creating "Seller Agency". If a Broker wishes to give the Buyers the option of representation as a Buyer's Broker, dual agency may be created. This is when the Buyer wishes to purchase a property listed with that Broker in which they already represent the Seller.

The Broker with the "informed written consent" of the parties (Seller and Buyer) may represent both of them. The Broker owes both parties honesty and fairness in dealings and must disclose only information that the parties authorize to be disclosed to the other party. The Broker cannot help the parties to negotiate against each other for price and terms.

Dual Agency can also be created when a Broker, who represents Buyers solely, has multiple clients with the same needs and those Buyers are considering the same property.

5) Is it best to deal with a Buyer or Seller Broker?

Quite frankly, there are advantages and disadvantages to each. Many Brokers would have you believe there is only one option. The fact is that you should be a wise consumer and seek to understand what is the best option for your needs.

Landmark, REALTORS® represents Buyers in the purchase of properties and Sellers in the sale of properties. In the event that a Buyer is interested in a Landmark listed home, or there are two or more Buyers who are interested in the same property, Landmark would represent the parties as a "Disclosed Dual Agent". Landmark, REALTORS® would seek out options that the consumers are comfortable with. In any event, it is always our goal for the consumers to make educated decisions on what is best for them.

6) What is a "Buyer Agency"

• Explain the process and provide you with Landmark's informative Buyer's packet.
  
  
• Keep everything you disclose absolutely confidential.
  
  
• Meet with you to understand and determine your needs and wants in a property.
  
  
• Help you get pre-approved for financing, if it will be needed.
  
  
• Save you time and money by researching properties in your comfortable price range and with features you desire. We will research our statewide MLS, Landmark's inventory of homes, government offerings and even For Sale By Owners.
  
  
• Provide you with necessary information so you can make informed decisions on selected property.
  
  
• Help you complete an offer under your price and terms to the Seller.
  
  
• Recommend attorneys for review of necessary documents.
  
  
• Explain Purchase and Sales Agreement to you.
  
  
• Have lenders discuss the best financing options for you. Counsel you on the mortgage application.
  
  
• Research the property to assure you that your investment is a wise one. Help you to arrange inspections of the property. Confirm that needed corrections or repairs have been completed prior to closing.
  
  
• Offer you the option of a home warranty.
  
  
• Explain any notification or obligations you may have to the Seller.
  
  
• Coordinate paperwork and responsibilities of the parties and keep you informed throughout the transaction, helping you to be sure all contingencies are met.
  
  
• Make suggestions so that you may determine the most favorable insurance policy.
  
  
• Inform you of the appropriate time to arrange transfer of utilities and mail.
  
  
• Prior to closing, we will arrange a final walk-through of the property to assure that the property is in the condition you expected, any repairs required have been completed and that you have an understanding of the property's special features.
  
  
• Coordinate transfer of such items as keys, garage door openers, security codes, and maintenance contracts.
  
  
• Be present at closing for review and analysis of the Settlement Agreement.
  
  
• Retain records for future reference, if needed.