When referring to brokers/salespeople representing them in an MLS London real estate transaction, buyer or seller clients frequently use the term agent. Many media articles use the term to describe the same client-REALTOR® relationship. However, the term is misleading in this context. The brokerage is the agent in a real estate MLS London transaction.
Agent, as well as related terms like agency and agency relationship, have their origins in common law. The term "common law" refers to "the part of English law derived from customs and judicial precedent rather than statutes." The brokerage, in legal terms, is the agent authorized by the principal (i.e., the buyer or seller) to represent the principal in the real estate transaction. The right or permission granted by one person to another is referred to as authority.
A buyer representation agreement or a seller representation agreement is typically used to document an agency relationship between the agent (brokerage) and the principal (also known as a listing agreement). There are two types of authority in real estate: actual and implied. Actual authorities are those granted to the agent (brokerage) by the principal (buyer or seller) and are outlined in the terms of the agreement. Given the nature of the relationship, implied authorities are assumed; these enable the agent to complete the task. Before searching MLS London, visit OREA to learn more about relationships and responsibilities.
Purchasing or selling an MLS London property is likely to be one of the most significant financial decisions that the average consumer will make in their lifetime. It is a good idea to think about the type of relationship you may be entering into with a REALTOR®. The more you learn, the more satisfied you will be with the results.
This guide is designed to assist you and your REALTOR® in discussing the information you require to make an informed decision about your relationship.
What Exactly Is Agency?
When two parties agree to have one act on behalf of the other, they form an agency relationship. The real estate agent acting on behalf of a buyer or seller will be used as an example in this guide.
The agency relationship exists between the Client (real estate sellers or buyers) and the Agent when searching MLS London (the brokerage, including its broker, associate brokers and associates). Brokerage service agreements, which detail each party's responsibilities, are the means by which buyers and sellers are fully informed about their potential relationship with the brokerage and expressly consent to it.
It is important to note that an agency relationship can be formed if either party acts in a way that implies the existence of such a relationship. An unintentional agency relationship may be formed, for example, if the buyer or seller provides confidential information to the REALTOR® or seeks advice about a potential purchase or sale.
Home buyers and sellers should be cautious not to enter into this relationship until they have made a conscious decision to have the brokerage act on their behalf MLS London goals and have given written consent to the agency relationship.
Agency Responsibilities When Searching the MLS in London
The Agent has authority to represent the Client in a real estate transaction, which is the essence of the agency relationship. Because of the complexity and importance of a real estate transaction, the Agent must exercise discretion and judgement when carrying out duties on behalf of the Client, which means that the Agent is also a fiduciary under common law.
Fiduciaries are required to protect and promote their clients' interests as they would their own. When assisting with a MLS London property search, the Agent has the following fiduciary obligations:
GENERAL OBLIGATIONS OWED TO CLIENTS
- Use caution and skill: have the necessary knowledge and skills; provide complete and accurate information; and, where appropriate, recommend relevant experts.
- Negotiate favourable terms: promote the client's interests by assisting in negotiations; draught favourable terms and conditions for agreements resulting from the negotiations
- Maintain confidentiality in all matters (e.g., client personal information, client motivation for buying/selling, amount to be paid or accepted during negotiations).
- Disclose information: disclose information relevant to the client (e.g., actual or potential conflicts of interest); disclose transaction-related matters
- Ensure sincerity: show sincerity of intent in all dealings.
- Act in person: unless otherwise directed, carry out duties personally.
- Obey instructions: follow the client's instructions unless they are illegal (e.g., the client asks you to create a misleading advertisement regarding the property)
- Perform mandate: carry out the mandate outlined in the representation agreement; act only within the scope of specified authorities; If you are unsure about the authorities, seek clarification.
FIDUCIARY OBLIGATIONS OWED TO CLIENTS
- Maintain utmost loyalty: the client's interests come first, which is best accomplished through single representation (i.e., you represent the interest of only one party to a transaction)
- Avoid conflicts of interest: be aware of situations that could result in conflicts of interest, such as:
- representing two or more clients concurrently (multiple representation)
- purchasing the client's property
- offering to sell your own property to the client
- Disclose conflicts: in writing and signed by the client, disclose any personal or third-party interests that do or might conflict with the client's interests; disclose the exact nature and extent of the conflict(s).
- Do not make a secret profit: Do not profit at the expense of the client (e.g., giving incorrect advice, accepting payment from another party without the client's knowledge and written consent).
- Not misuse confidential information: do not use confidential information (e.g., confidential details about the client, the property, and/or the transaction) for your own interests, to harm the client, or to interfere with the client’s endeavours
As licenced professionals, members of the real estate industry are also subject to statutory obligations outlined in the Rules and Regulations. These obligations supplement the above-mentioned common law duties. Overall, when looking for your dream MLS London home, you are entitled to, and should expect, competent service from your Agent. Knowing that the brokerage and its representatives are required by law and ethics to be truthful in all real estate transactions. This approach is reflected in OREA's standard real estate service agreements.
Please do not hesitate to request that the brokerage representative show you the agreements relevant to the transaction you are considering.
The Client is also obligated to the Agent in order to assist you with your MLS London objections.
You have the duty to:
- Compensate the Agent for the expenses incurred as a result of carrying out its responsibilities on your behalf;
- Pay any agreed-upon remuneration or compensation specified in the signed service agreement;
- Matters that could affect a transaction, including material facts that must be passed on to the third party in the real estate transaction, must be disclosed to the Agent.
When it comes to MLS London It is also your responsibility to carefully read all documents and understand what you are signing. If you require specialized assistance, consult with other professionals such as lawyers, accountants, and inspectors.
Looking for MLS London? Search MLS listings today to find you next dream home. Contact Realtown owner Yasir Khan, Sales Representative at RE/MAX.