3. REAL ESTATE AGENTS

Real estate transactions are commonly handled by a representative for the buyers and sellers. This person is known as a real estate agent. The person the real estate agent represents is known as the client and the non-represented party is known as the customer. A real estate agent does not normally represent both parties as it can cause problems and is illegal in many states. For this reason both parties should have their own agent.

The real estate agent has certain responsibilities towards their client and the customer, though they are not the same or equal.

Client Responsibilities:

Care use their skill and knowledge to benefit the client

Obedience follow all of the client's legal instructions

Loyalty put the client's interests above all other, including their own

Disclosure keep the client informed of all facts about the transaction

Accounting have information of all money that has changed hands in the transaction

Confidentiality keep all information about the client to themselves so it will not affect the real estate transaction

Customer Responsibilities

Reasonable care and skill - Have knowledge of real estate laws and procedures and ensure the real estate deal is handled according to those laws and procedures.

Deal honestly (does not mean fair) - The real estate agent must be honest with the customer when discussing any aspect of real estate. However, if a customer makes an offer on a home well above what it is worth, the agent has no obligations to inform them.

Make sure all pertinent facts are disclosed A real estate agent must inform a customer of anything that is required by law to be known about a property. For example: A termite infestation or lead paint.