FAQ When Talking to Buyers Agent in Portland

FAQ When Talking to a Buyers Agent in Portland

For many buyers, having a Buyers Agent is the ideal choice. My practice is Exclusive Buyer Agency -- the best form of BUYER REPRESENTATION, IMHO. Having a Buyers Agent work for you is an option many home buyers are looking in to. WHY? Because Home Buyers are beginning to realize that the listing agent works for the Sellers.

Here are some Frequently Asked Questions I've complied. These are actually on my website: EBA Portland -- Frequently Asked Questions

Q: What is "Dual Agency"?
A: Buyers and sellers of real estate are deemed by law to compete with one another and to have adverse interests. Accordingly, a real estate broker who acts as an agent for both a buyer and a seller in the same real estate transaction is a dual agent. A real estate broker who acts for both the buyer and the seller and does not clearly disclose his/her status to both parties and receive their informed consent to the arrangement is an undisclosed dual agent.

SIMPLY STATED: Exclusive Buyer Agency is the most ideal form of agency for a buyer!

Q: What is "Disclosed Limited Agent"?
A: This is what Oregon Real Estate law proscribes -- Disclosed "Limited" Agency. It stipulates that a "conflict of interest" must be disclosed. An agent under a "Disclosed Limited Agency agreement has no duty to investigate matters."

SIMPLE STATED: Why would a Buyer (or a seller, for that matter) want to have a "conflict of interest" even if it's disclosed?

Q: What is "Agency"?
A: An agency relationship is defined under the common law as follows:

1. Agency is the fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on their behalf.
2. The one for whom action is taken is the principal.
3. The one who is to act is the agent.

SIMPLY STATED: An agency relationship is created when the principal (either a buyer or seller) allows the agent to act on their behalf.

Q: What is a "Fiduciary"?
A: Fiduciary duties are the highest duties known to the law. Classic examples of fiduciaries are trustees, executors, and guardians. As a fiduciary, a real estate broker will be held under the law to owe certain specific duties to their principal, in addition to any duties or obligations set forth in a listing agreement or other contract of employment (such as a buyer agency agreement).

SIMPLY STATED: An Exclusive Buyer's Agent has a "fiduciary duty" to their principal (the buyer) to act in their best interests.

Q: What is "Single Agency"?
A: As a practical matter, real estate brokers should avoid dual agency relationships. Creation of a lawful disclosed dual agency relationship is difficult. The obvious alternative to dual agency is single agency: A real estate broker should have one and only one principal per transaction; they should extend loyalty and work diligently to ensue the legitimate interests of their principa.

SIMPLY STATED: Exclusive Buyer Agency is the most ideal form of agency for a buyer!

Q: Do all Buyers' Agent or EBA's work under contract?
A: Not all do. My office does work under a Buyer Representation Agreement in order to avoid any misunderstandings on the AGENCY RELATIONSHIP.

Q: Do Buyers' Agents or EBA's CHARGE buyers directly?
A: No. While any Realtor® can charge a "retainer fee" or other agreed to form of compensation, must Buyers' Agents and EBA's are paid from the proceeds of the listing agent, in what is typically called: A co-op fee, or co-broker fee. This mean, that having a Buyers' Agent or EBA work for you is FREE!