| This is one of the most misunderstood aspects of | | | | the commission due. Only fair. |
| buyers and sellers of real estate in GA. It is very | | | | CUSTOMER: If you choose to NOT be |
| confusing for all, including some agents who lack a | | | | represented by an agreement, then you become |
| clear understanding of the process. Basically there | | | | a customer. Being a customer means you are on |
| are two forms of representation available to | | | | your own in finding information and advice on |
| buyers and sellers in GA. It boils down to being | | | | buying or selling. The broker/agent will not be |
| represented (a client) or not (a customer). But | | | | required to give you any info or advice. The |
| within these two categories, there are degrees of | | | | broker/agent is required to honest and fair in their |
| representation. Confused already? Let me start | | | | approach to you as a customer, but nothing |
| with a simple overview of each and then get into | | | | more. This is completely undertandable since they |
| particulars of each. | | | | have no guarantee of being paid. They will assist |
| CLIENT: Being a client means you have some | | | | you in properly filling out the contract and seeing it |
| signed agreement with a broker to be | | | | through closing but will not inform you if you are |
| represented in a real estate transaction. First, let | | | | overpaying, if the home is falling apart, if a dump |
| me say, in NO case are you signing an agreement | | | | is going in behind the home, if the school system |
| with an agent! You are signing with his/her Broker, | | | | is the worse in the state. etc, etc. All this |
| who is responsible for all actions of the agent. This | | | | becomes your responsibility. |
| agreement means you and the broker, through | | | | Two other forms of Agency you should be |
| the brokers agent, have some agreement to | | | | aware of are: |
| work together to purchase or sell real estate. The | | | | Dual Agency: This is where the broker has a |
| degree of representation you will receive will | | | | signed agreement with BOTH the buyer and the |
| depend on which agreement you have signed. In | | | | seller. Wow, this is bad, since it is very difficult, if |
| both a buyers and a sellers position, there are | | | | not impossible, to represent both parties and do |
| Exclusive and Non-Exclusive agreements. Most | | | | the best job for both. I do not do dual agency |
| brokers will not accept a Non-Exclusive agreement | | | | and suggest you do not also, but if you do trust |
| because it does not guarantee they will be paid | | | | your broker enough to proceed with this |
| for their efforts on your behalf. So, let's | | | | endeavor then ask your broker to at least give |
| concentrate on an Exclusive agreement. This | | | | you an "assigned agent" to assist you. At least |
| guarantees you will get the complete attention | | | | you will be working with an agent not signed with |
| and the full help and assistance of the broker in | | | | the opposition party. In my opinion, the best way |
| buying or selling and guarantees the broker will be | | | | to handle this situation is before you sign an |
| paid if he performs his duties. Under Exclusive | | | | agreement to be represented, while a customer, |
| agreements the broker is to work solely on your | | | | ask the broker to show you all the listing that |
| behalf and give you any and all information and | | | | match your criteria. If you like one of these listing, |
| advice available to strengthen your position in the | | | | then get yourself an agent from another broker. |
| decision and the negotiation and you, in turn, are | | | | If none of the brokers listings appeal to you then |
| required to work with a single broker only. Any of | | | | you can sign the agreement and ask the broker |
| these agreements can be cancelled at any time | | | | agent to show you other brokers listings that |
| by the buyer, seller or broker. You are NEVER | | | | meet your criteria. You will be protected in the |
| locked in to an agreement even though the | | | | this manner. If it happens, during the agreement |
| contract calls for such for a certain period of time. | | | | period, the the broker list a home that is the one |
| You may cancel the agreement by notifying the | | | | you want, and it is your agent who does the |
| other party in WRITING. No reason is required. | | | | listing, then ask for another agent to represent |
| But, if the broker has performed his duty, you | | | | you. Remember, your agreement is with the |
| may still be responsible for his commission if it has | | | | broker, not with the agent. |
| been earned. If a broker finds a buyer for your | | | | TRANSACTION AGENT: Is is rare and unlikely |
| home under the conditions of the contract, you | | | | you would run into this but it is good for you in |
| will still be responsible for the commission even if | | | | certain cases. A transaction agent does not |
| you decide at the last minute not to sell your | | | | represent either party in the deal. They are there |
| home. The broker had fulfilled his duty under the | | | | simply to see the details are done properly, |
| contract and deserves to be paid for his efforts | | | | assisting both parties. When would you use a |
| on your behalf. The same situation applies to the | | | | transaction agent? Some cases would be a seller |
| buyers agreement, you still owe the commission if | | | | selling to a relative, or a FSBO who wanted |
| you back out on a signed purchase contract. The | | | | assistance in getting an agreed deal put into |
| buyer and seller are also committed for a certain | | | | writing. Of course the agent would have to be |
| period of time past the end of the agreement for | | | | paid but not a full commission. Workable in some |
| the commission. This time limit will be clearly | | | | situations. |
| spelled out in the agreement. This prevents a | | | | It could take all day to go over all the possibilities |
| buyer and a seller getting together and cancelling | | | | of agency but this should give you a little clearer |
| their agreements, completing the sale and avoiding | | | | understanding of Agency In GA. |
