Let's Talk About Agency

Seller Agency (Traditional Agency) - The real estate broker/agent represents the Seller in the real estate transaction and in the course of that representation may advise the Seller about all aspects involved in the sale of the property including price. Up until October 1995, when an amendment to Virginia's Agency Law went into effect, the broker/agent who listed the home was the agent and all other real estate agents who showed the property represented the Seller as subagents. In other words, until Virginia's new agency laws were amended years ago, the agent who took you out and showed you homes was a subagent of the Seller and worked for him. This doesn't mean that your real estate agent didn't do a good job for you. Most assuredly, he did, because real estate agents were obligated to be honest with all parties of a real estate transaction. Still, according to the Old Commom Law, agents represented the Seller. Now, however, under Agency there is an option for the Buyer to secure his own representation.

Types of Seller Agency

• Exclusive Agency Listing- The broker represents the owner. In MKB, REALTORS' Silver and Bronze Packages (Limited Service) the services provided are very limited. The owner still reserves the right to sell the property himself and not pay a commission to the listing agent, just the set fee as agreed at the time of listing the property. The owner is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. MKB, REALTORS is paid the listing service fee and the buyer's agent is paid the compensation offered through the Multiple Listing Service, the owner pays both fees.
• Exclusive Right-To-Sell Listing- (Platinum and Gold Packages) This is the most commonly utilized relationship. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage, his own brokerage, or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property himself without paying a commission, unless and exception is noted in the contract.

Buyer Agency - The real estate broker/agent represents the Buyer in the real estate transaction and in the course of that representation may advise the Buyer about all aspects of the transaction including price. This means that you can sign a contract to be represented by your agent who will advise you and negotiate on your behalf throughout the home purchase process. Buyer Agents may be compensated in several ways but the most common way in our area is to be paid by the Seller at closing out of the proceeds of the sale.

Dual Agency - When a Buyer and Seller are both represented by the same broker/agent, the real estate agent is said to be a Dual Agent. In this role, the broker/agent may not advise either party but acts in such a way as to assure that the transaction comes to a satisfactory conclusion for both parties. In the past there was no alternative to Dual Agency; however, with the passage of a new law that went into effect October 1, 1995, in cases of Dual Agency, the Managing Broker of the real estate firm may appoint a Designated Agent.

Designated Agency - A Designated Agent may be appointed by the Managing Broker to represent one of the parties of a transaction therefore assuring that both the Buyer and the Seller have equal and full representation. In this case the Managing Broker is the neutral party, or the Disclosed Dual Agent. Agency disclosure is the law in Virginia and while the Buyer must make the choice between having his agent work for him as a Buyer Agent or to work with his agent in the traditional sense, all agency disclosures must be in writing and signed by all parties to the transaction. If you have questions about agency, please ask your real estate broker/agent to explain your options fully and if you are still confused or uncertain about agency, it is recommended that you consult with your attorney.