Agency Protects the Buyer and the Seller

One of the pitfalls which a real estate agent occasionally creates is their willingness to give advice and counsel before they have created an “agency” relationship.  An agency relationship exists when the Buyer or Seller chooses an agent to work on their behalf.  The agent then has a “fiduciary” obligation to follow the wishes of the Buyer or Seller, provided that they follow applicable law.  Real Estate agents have a solemn responsibility to represent their clients.  For specifics please click here.

One of the first things a real estate agent should do is to discuss 'agency' with their client.  Utah State Law requires that this dialogue about agency takes place early in the transaction so that everyone is aware who is representing the various parties.  If this is done properly and the rules of agency are adherred to, then each party in the transaction has appropriate representation and their best interests are protected by law.

At Welch Randall we try to avoid “dual agency” or limited agency where one agent represents both parties. It is called limited agency because the agent has certain restrictions regarding the counsel they are allowed to give as they are trying to represent both sides.  Our policy is that better representation comes when each party has their own agent.  An agent has a fiduciary role with each of their clients.

The way a buyer or seller hires an agent is to create an agency agreement with that agent. The agent then has the responsibility to put the client’s needs first. For more information please reference this link.

Please contact me for further information.

Posted by Steven Randall