From: wb2hbz@ka2qhd.de.com (Jim Dockery)
Newsgroups: misc.consumers.house
Subject: Re: How to tell a REAL buyer's agent
Date: 2 Jan 93 18:34:39 GMT
Organization: ka2qhd - Ocean NJ



Let me point out several things before I start.  First, I have only been 
half-following the conversation regarding the buyer's agent.  Second,
I know enough about real estate to be dangerous (freely translated that
means I am studying for my salesperson's license and I checked the text
book.)  Third, I bounced it off my wife, a licensed broker-sesperson
in NJ for the past 15 years.

In New Jersey, as in most states, the Real Estate Agent (broker or 
sales person) has a fiduciary responsiblity to the seller of the 
real estate.  This is a plain and simple fact unless noted otherwise.
Currently the law does not require the Agency to notify the potential
buyer that they do, in fact, work for the seller, the party who pays the
commission.

In class they refer to this as a Client / Customer Relationship as 
follows:

     1.  A client is one whose interests you represent to the extent
         where you place their interests ahead of your own.

     2.  A customer is one whom you sell something to.  In this case
         the buyer should remember the words "caveat emptor."  Anything
         said in the presence of the agent that may affect the deal
         must be told the party holding their fiduciary trust, as in 
         seller. 

An agent is an extension of the seller.  That is why the relationship
exists and why the commission ipaid by the seller.

One of the main reasons an agent spends so much time running around
trying to find you a nice place that matches your desires and your
qualified ability to pay for it is to best represent the seller.
The better job an agent does on qualifying the buyer as to ability
to pay and what they would like, the better chance their client (the
seller) has of closing the deal in a timely manner.

All of the above still applies when working through a multiple 
listing service.  This is when another agency becomes a sub-agent
of the listing agent in order to find a qualified buyer.  The sub-
agent is the selling agent.

There is a new type of agent emerging, however.  This is called the
Buyer's Agent.  They do represent the yer.  They must also tell the
people they are working with that they a buyer's agents.  If not, the
current laws note that they have a fiduciary responsibility to the 
seller.

You will note that this difference,he buyer agent, per se, is adver-
tised on their sign, business cards, stationary, newpaper ads, etc.
They are required to tell all parties concned.  In this case, thbuyer will probably have to pay some sort of commission also as they
are hiring an agent to work for them.

The best tng to keep in mind here is that the happier a yer is
kept, the happi a seller should be providing that the buyer w 
properly qualified by the agent to begin wit  This means it is
what the buyer wants, both rties are happy with price, and the
buyer is able to pay for the real tate.  Then the best interests
of the seller are cared for, for the mo part.

In New Jersey, there is currently legiation in process to explicitly
notify all parties in a real estate traaction as to who is working
for whom.  From what I understand, this wi be law by sometime next
summer.

The process will be simple.  A prosptive buyer and seller ll sign
a document that they have either read  have read to them and
witnessed the signatures that the agent works f the seller unless
stated otherwise.

I would preciate your comments.

Jim
-- 

Jim Dockery - Oakland NJ                  Packetmail: wb2hbz@ka2qhd.nj.usa.na
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