Realtors Guide to Compliance with the Law of Agency
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Real Estate Agency
about to enter the often confusing world of real estate agency.
In truth, almost as many real estate agents are as confused about
agency as buyers and sellers. Worse yet, many agents,
buyers, and sellers take the attitude that agency doesnt matter
and that all buyers want to do is buy and all sellers want to do
is sell, so please dont confuse me with all this agency stuff.
Well, if you really want to have your interests protected when you
buy your next home, you had better take a little time to become
more knowledgeable about agency. If you dont, you may very
well end up, unknowingly, in the wrong type of relationship with
a real estate licensee and pay too much for a home...buy the wrong
home...get the wrong financing, or perhaps end up with unexpected
repairs and/or other surprises.
In November, 1986, the National Association of Realtors® published
a booklet titled: Who Is My Client? - A Realtors® Guide
to Compliance with the Law of Agency. This guide still stands
today as one of the most comprehensive and accurate sources of information
concerning the common law of agency as it applies to real estate.
Our discussion of agency will begin with quotes from this guide.
The following discussion is detailed and involved and you probably
wont read or hear about any of these important matters anywhere
else. But...if you really want an understanding of how to protect
your interests in a real estate transaction, you need to take the
time to read and understand this material.
From the PREFACE: The legal concept of Agency
with which this booklet is concerned is beyond question the most
fundamental of all the legal concepts applicable to the real estate
profession and professional. It is the very nature and function
of the real estate broker, appraiser and manager to be an agent.
The law of agency literally defines the species and
gives real estate practitioners their identity.
(Continue To Part 2 of 7)