AGENCY (IT’S THE LAW)

Did you know that REALTORS are required by law to advise you (the public) about the various agency relationships in real estate.  This should not be construed as a full and complete description of each agency relationship and is only to serve as an overview.  You should ask your agent to explain agency relationships and what their particular brokerage offers.

At FOUR WINDS REALTY, we offer the following four types of agency:

SELLER’S LIMITED AGENT – This is where the seller has signed a written listing agreement with the brokerage to sell their property. 

1.            The agency (all agents in the listing office) represents the seller and owes   

   the following duties and obligations to the seller:

            (1)             To perform the terms of the written agreement (listing contract);

            (2)             To exercise reasonable skill and care for the seller;

(3)             To promote the interests of the seller with the utmost good faith,
      loyalty and fidelity, including:

            (a)            Seeking a price and terms acceptable to the client.

            (b)            Present all written offers to & from client timely.

            (c)            Disclose to client adverse material facts known or those

                            that should have been known by the agent.

            (d)            Suggest or recommend use of experts when beyond

                            expertise of agent.

(4)            Account for money received.

(5)            To comply with Missouri Statutes, Rules & Regulations.

(6)            To comply with federal, state and local laws, including fair

                 housing and civil rights statutes.  

2.            An agent acting as a seller’s agent shall not disclose any confidential

               information unless disclosure is required by statute.

3.            The agent owes no duty to a customer, except he (she) shall disclose all

               adverse material facts known or those that should have been known.

4.            A seller’s agent may show alternative properties for sale without

               breaching any duty or obligation to the seller.

1.            The agency (agent) represents the buyer and owes the following duties and 

               obligations to the buyer:

            (1)             To perform the terms of the written agreement made with the

                              client;

            (2)             To exercise reasonable skill and care for the client;

(3)             To promote the interests of the client with the utmost good faith,  

                  loyalty and fidelity, including:

            (a)            Seeking a price and terms acceptable to the client.

            (b)            Present all written offers to & from client timely.

            (c)            Disclose to client adverse material facts known or those

                            that should have been known by the agent.

            (d)           Suggest or recommend use of experts when beyond

                            expertise of agent.

(4)            Account for money received.

(5)            To comply with Missouri Statutes, Rules & Regulations.

(6)            To comply with federal, state and local laws, including fair

                 housing and civil rights statutes.                  

2.            An agent acting as a buyer’s agent shall not disclose any confidential

               information unless disclosure is required by statute.

3.            The agent owes no duty to a customer, except he (she) shall disclose all

               adverse material facts known or those that should have been known.

4.            A Buyer’s agent may show other properties in which the buyer is interested to    other prospective buyers without breaching any duty or obligation to the buyer.

SUB-AGENCY – This type of agency is where the brokerage (agent) does not represent the buyer under a signed buyer’s agreement as previously discussed and the listing is a listing from another company.  In sub-agency the brokerage & (agent) is subject to the same duties as the actual listing company and agent.

TRANSACTION BROKERAGE – Occurs when the brokerage has the listing and the buyer has signed a buyer’s agreement (the same company represents both parties, seller and buyer). 

1.            An agent may provide service to any party in a prospective transaction

   without an agency or fiduciary relationship. 

2.            A transaction broker shall have the following duties and obligations:

            (1)            To perform the terms of any written or oral agreement made with

     any party to the transaction;

            (2)            To exercise reasonable skill, care and diligence, including but not

     limited to:

(a)            Present all written offers & counteroffers timely;

(b)            Inform parties to obtain expertise in matters beyond brokers

                expertise;

(c)            Accounting of money timely

(d)            Disclose to each party any adverse material facts that agent

                 has actual notice or knowledge of;

(e)            assist parties in complying with terms & conditions of contract;

3,            The following information shall not be disclosed by the transaction broker

               without the informed consent of the parties disclosing such information.

            (1)            That a buyer is willing to pay more that the purchase price;

            (2)            That a seller is willing to accept less than the asking price;

            (3)            What the motivating factors are for buying or selling;

            (4)            That a seller or buyer will agree to financing terms other than those

                             offered;

            (5)            Any confidential information about the other party, unless required

                             by law or statute;

These are the four types of agency offered at FOUR WINDS REALTY.  The descriptions shown above are not complete as outlined in the Missouri Real Estate Commission rules and regulations, however, does highlight the salient points.  You should be given a MISSOURI BROKER DISCLOSURE FORM at the earliest practicable opportunity during or following the first substantial contact.