Agency
An agent is someone who represents your interest. If a real estate licensee represents you as an agent, then certain fiduciary duties attach to that representation. The fiduciary duties owed at a client are: disclosure, loyalty, accounting, confidentiality, reasonable care, diligence and obedience to lawful instructions.
An agent could also represent another party in a deal and you maybe unrepresented. in this case, you would be treated as a customer. A customer is to be treated with honesty and fair dealing; however, the other fiduciary duties mentioned above do not apply.
The types of agency available in Kentucky are as follows: seller's agent, buyer's agent, limited dual agency, designated agent or transaction broker. The Kentucky Real Estate Commission has a document entitled "Agency Information for Consumers Bulletin" that outlines these relationships in detail. Click here for a copy.
Limited Dual Agency
Oftentimes, a buyer will work with the agent who has listed a property for sale. If the agent represents only the seller, the agent will disclose this agency relationship to you in writing through a Commission approved Agency Disclosure Form. In this instance, the buyer would be a customer, not a client. Customer status means that the buyer will be treated with honesty and fair dealing by the agent, but you will be not be represented by the agent. You have the RIGHT to seek your own representation.
If the agent has the written consent of both parties to act in a limited dual agency capacity, then the agent will be representing both the buyer and the seller in a limited way. Once the agent represent both sides of the deal, the agent cannot perform many of the actions or duties as he or she could when representing only one party. For instance, the agent cannot try to get the highest price for the seller while also getting the lowest price for the buyer.
Remember: An agency relationship requires both knowledge and consent. You have the right to be represented by whomever you wish.
* The above was taken from The Kentucky Real Estate Commission. I personally do not perform limited dual agency. If you would like to meet ot discuss agency in detail, please contact me with the below form. Or call my cell at 859-492-1351 or toll free 877-601-4790. |