Real Estate Agent

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Real Estate Agent

Date Added: October 08, 2008 04:41:02 AM
Category: Agents & Brokers
A real estate agent is a person who acts as an intermediary between the buyer and the seller in a real estate transaction. The main work of the agent is to find a seller and a buyer who wish to buy the property from the seller. The seller’s agent tries to get the highest possible price for the property at the best available terms and the buyer’s agent will assist the buyer in purchasing the property at the lowest possible price with the best payment terms. In the US it is important for the agent to hold a license if he/she wants to be a real estate agent. Though some states may allow the broker to work without a license it is always advisable for the broker to have a license. Earlier the broker job was only to help the seller sell the property. Once the buyer and seller met and the price are agreed upon the job of the broker came to an end. Today the scope of the brokers work has increased. He not only helps the buyer and sellers meet, but also facilitates in the smooth completion of the transaction. In order to get an agents license some states in the US stipulate that the person takes minimum number of classes and also take a state exam. If a person moves to another state then it is not compulsory for him to classes (if there is an agreement between states) and he may directly need to pass the exams. After gaining some years of experience the person may decide to become a licensed real estate broker where ha manages his own operations and does not have to work under any other person. To become a licensed broker more course work and a state exam for brokers needs to be passed.

There are two types of relationship that the broker may have with the client:

Agency Relation: the real estate broker in an agency relationship acts as a legal representative of the buyer or the seller.
Non-agency Relation: here there is no written agreement between the broker and his client. Since there is no expressed agreement there is no agency relation created

Transaction broker
A transaction broker is a person who does not have an agency nor does he have a fiduciary relation with either the buyer or the seller. He/she merely act as a facilitator in completing the transaction between the buyer and the seller without representing the interest of either party of the contract.

Dual Agent
A dual agent in a real estate transaction is the agent of both the buyer and the seller. Many states in the US do not allow dual agency as it may affect the interest of either the buyer or the seller.

It is important that you know that even though the broker is the agent of the principle (buyer/seller) he typically is not given power of attorney to sign on the behalf of the principle. Usually the brokers charge a certain fees for helping you buy/sell the property. This fee is in the form of commission and may vary from 5-6% depending on the state that you are in.
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