Ever reunite with an old friend? With my dear friend, we can go years without seeing each other, but when we do it’s as if time has stood still and we just picked up where we left off. My best buddy knows everything about me. Our relationship is defined as unconditional trust in each other. Just as friendships are defined, so is the relationship with your real estate broker. Can you define your relationship? In Colorado, there are different brokerage relationships;
Seller’s Agent: A seller’s agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller.
Buyer’s Agent: A buyer’s agent works solely on the behalf of the buyer to promote the interest of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer.
Transaction Broker: A transaction-broker assists the seller or buyer or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties.
Customer: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party’s agent or as the party’s transaction-broker.
Your broker will explain the different working relationships to you upon your first meeting and you will sign a “Definition of Working Relationship” form. Always make sure you understand how you are being represented when selling or purchasing real estate. And remember, just as with a friendship, you should know how your relationship is defined and you always have a say in how you will be represented!