As Featured in TARGET ATLANTA Magazine - Written by Janet & Stuart Brenner: 

You and Your Broker: Finding a Relationship That Works

Buy with confidence with the Brenners behind you to find the right property at the right price. Buy right with the Brenners' bargaining and negotiating skill working on your behalf. 

You and Your Broker:
Finding A Relationship That Works 

There Are Several Different Types of Agency Relationships Between Brokers and Clients: Learn Which Type Will Work Best For You. 

John and Sue Smith encountered what must have felt like a real estate twilight zone when purchasing their first home. They trusted their real estate agent to represent their best interests when dealing with home sellers. They told him how much they were willing to spend. The tables turned when they learned their agent had disclosed this information to a potential seller. They found out their agent was by law a representative of the seller, not the buyer, and that this type of information was not considered confidential. 

Today, the ethical gray areas in relationships between agents, buyers and sellers have been regulated and clearly defined by a three-year-old agency disclosure law. This allows consumers to accurately assess the role of their real estate agent so that they can choose the best relationship for their particular needs. 

How does the law accomplish this? It requires the real estate agent to disclose to the buyer the types of agency relationships his broker offers and whether or not the broker has any pre-existing relationships that may be in conflict with the prospective client. The law sheds light on the variety of relationships a buyer or seller can have with his agent. It clarifies the role your broker has in buying and selling your home, while giving you the power to choose the relationship that works best for you. 

Types of Relationships
There are four basic types of broker-client relationships. The "Seller Broker Relationship" is a situation in which the seller is a client of the agent. The agent represents the seller in all transactions. 

The "Transaction Broker" is a situation in which the agent has not executed an engagement with either party and therefore has no clients in the transaction. This is the least utilized relationship. 

The "Dual Agency Relationship" is a situation where the buyer and the seller are represented by the same broker. The agent serves as a conduit --- only transmitting authorized information between parties. In other words, the agent only relays information that his clients approve. 

The "Buyer Broker Relationship" is a situation in which the buyer is a client of the agent. Since this relationship is the most advantageous for the buyer, let's take a closer look at how it works. 

Buyer Brokerage
In this relationship, the agent represents the interest of the buyer only, and this is understood by seller, buyer, and agent. The duty of the "Buyer Brokerage" agent is to promote the best interest of the buyer. For example, if John and Sue Smith had worked with a buyer’s broker, the issue of confidentiality would not have occurred. If you enter a 'Buyer Brokerage' agreement, your real estate agent must keep information you discuss with him confidential if you instruct him to do so. This insures that information that could affect the price of the home you are trying to buy is not disclosed without your permission. 

In fact, the only way information can be released is when you permit the disclosure, where the law requires, or where the information had become public knowledge from a source other than the agent. This arrangement allows your agent to truly be an advocate for your best interest. 

But does it cost you more money to work with a buyer’s agent? The answer is no. It is common practice for the seller to pay the real estate commission associated with the sale of a property, and the buyer broker is often paid from these funds. Due to this practice, the buyer does not incur any out-of-pocket expenses by employing a buyer’s broker. The fact is that an agent's duty of loyalty has never been determined solely by who paid the commission associated with the purchase and sale of realty, even though agents and consumers alike have often assumed that it did. 

With this knowledge, John and Sue Smith can purchase their next home with a firm understanding of how a real estate agent can work for them. They can choose the type of relationship they want without fear of being surprised during the process. 

As you can see, if you are a potential buyer, there are many advantages open to you today. Not only can you knowledgeably discuss what your broker should be able to do for you, you can choose the type of relationship you want to have with your real estate agent. As you move to a more empowering role as a home buyer, the experience will prep you for the challenges and advantages you will inevitably encounter as a home seller. Most importantly, you are at a great liberty to find out what is in your best interest when dealing with individual brokers and their agents--truly an advancement in consumer rights in the area of real estate.