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. Through the Multiple Listing Service the broker/agent who listed the home is the agent and all other real estate agents who show the property work for the Seller as subagents. In other words, until Virginia's new agency laws were passed a few 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 are obligated to be fair and honest with all parties of a real estate transaction. Still, according to the law, agents represented the Seller. Now, however, there is an option for the Buyer.

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.