Pamela Bell

Representation Provided

Represents the Seller (or Builder).  Work only for the Seller. May work with Buyers but may not represent them. Have a written listing agreement with a Seller. Obligated to try to sell their own listed properties.

Represents both the Seller and the Home Buyer. Work for both the Seller and the Buyer.  Must obtain the informed written consent of both the Seller and the Buyer.

Works with a Seller, a Home Buyer, or both in the sales transaction without representing anyone.  Cannot promote the interests of one party over the other party to the transaction.  Should provide a written agreement to any Seller.

Represents the Home Buyer. Work only for the Home Buyer. Provide a written buyer agency agreement to their Buyer client.

Activities Performed for a Home Buyer

Provide basic facts about properties (seller's asking price, features, and amenities) and sources of financing.

Yes

Yes

Yes

Yes

Show homes in the Multiple Listing Service.

Submit a purchase offer and convey the Seller's response Back.

Respond honestly and accurately to questions.

Disclose material facts known about the property.

Offer property without regard to race, creed, sex, religion, or national origin.

Yes

Yes

Yes

Yes

Advise in choosing an attorney.

Yes

Yes

Yes

Yes

Confirm needed correction/repairs have been completed.

Accompany on a final walk-through inspection of the property.

Tell the Seller everything they know about a Home Buyer including their financial situation and motivation for buying.

Guarantee in a written agency agreement to represent and work for the home buyer only.

Search for available properties, not just Multiple Listed properties, but also "For Sale By Owner", "For Sale By Developer/Builder",  and sometimes even locate properties that are not yet on the market.

Locate and show properties, pointing out not only strengths, but also weaknesses, potential problems, and factors that may impact resale of the property.

Discuss the price the Seller is asking, the reason they might be selling, the price they paid, how long or how many times the property has been on the market, and any concessions (in price or terms) that the Seller may be willing to give up.

Develop an estimate of comparative market value for the property,  and assist in developing an offering price.

Review and interpret comparable property values.

Advise regarding other offers on the property.

Help determine the need for professional property inspections and any warranties.

Identify any information detrimental to the Seller, or which might give an advantage to the Home Buyer.

Consult throughout the entire negotiation process offering advice and information regarding counter offers.

Negotiate only on behalf of the Home Buyer, be their advocate, and negotiate to get them the best deal in terms of price and terms.

Assist in independently evaluating the most favorable financing.

Supply financial information about neighborhood properties and value trends.

Advise on the final walk-through inspection of the property.

Attend the closing and represent the Home Buyer's best interests, as necessary.

Keep everything the Home Buyer tell us absolutely confidential and work in the best interests of the Home Buyer.

Seller's Agent -

who works only for the seller.

Buyer's Agent -

who works only for the buyer.

Disclosed Dual Agent -

who works for both the buyer and seller and can not favor either.

Transaction Broker -

who works with a buyer or a seller or both without representing anyone and can not promote interests of one party over the other.

New Jersey Real Estate Commission
Consumer Information Statement
on New Jersey Real Estate Relationships

In New Jersey, real estate licensees are required to disclose
how they intend to work with buyers and sellers in a real estate transaction.
(In rental transactions, the terms "buyers" and "sellers" should be read
as "tenants" and "landlords", respectively.)

1. AS A SELLER'S AGENT OR SUBAGENT, I, AS A LICENSEE, REPRESENT THE SELLER AND ALL MATERIAL INFORMATION SUPPLIED TO ME BY THE BUYER WILL BE TOLD TO THE SELLER.

2. AS A BUYERS AGENT, I, AS A LICENSEE, REPRESENT THE BUYER AND ALL MATERIAL INFORMATION SUPPLIED TO ME BY THE SELLER WILL BE TOLD TO THE BUYER.

3. AS A DISCLOSED DUAL AGENT, I, AS A LICENSEE, REPRESENT BOTH PARTIES. HOWEVER, I MAY NOT, WITHOUT EXPRESS PERMISSION, DISCLOSE THAT THE SELLER WILL ACCEPT A PRICE LESS THAN THE LISTING PRICE OR THAT THE BUYER WILL PAY A PRICE GREATER THAN THE OFFERED PRICE.

4. AS A TRANSACTION BROKER, I, AS A LICENSEE, DO NOT REPRESENT EITHER THE BUYER OR THE SELLER. ALL INFORMATION I ACQUIRE FROM ONE PARTY MAY BE TOLD TO THE OTHER PARTY.

Before you disclose confidential information to a real estate licensee regarding a real estate transaction, you should understand what type of business relationship you have with that licensee.

There are four business relationships:

(1) seller's agent;

(2) buyer's agent;

(3) disclosed dual agent;

and (4) transaction broker.

Each of these relationships imposes certain legal duties and responsibilities on the licensee as well as on the seller or buyer represented. These four relationships are defied in greater detail below. Please read carefully before making your choice.

SELLER'S AGENT
A seller's agent WORKS ONLY FOR THE SELLER and has legal obligations, called fiduciary duties, to the seller. These include reasonable care, undivided loyalty, confidentiality and full disclosure. Seller's agents often work with buyers, but do not represent the buyers. However, in working with buyers a sellers agent must act honestly. In dealing with both parties, a sellers agent may not make any misrepresentations to either party on matters material to the transaction, such as the buyers financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property which a reasonable inspection by the licensee would disclose.

Seller's agents include all persons licensed with the brokerage firm which has been authorized through a listing agreement to work as the seller's agent. In addition, the other brokerage firms may accept an offer to work with the listing broker's firm as the seller's agents. In such cases, those firms and all persons licensed with such firms, are called "sub-agents". Sellers who do not desire to have their property marketed through sub-agents should so inform the seller's agent.

BUYER'S AGENT
A buyer's agent WORKS ONLY FOR THE BUYER. A buyer's agent has fiduciary duties to the buyer which include reasonable care, undivided loyalty, confidentiality and full disclosure. However, in dealing with sellers a buyers agent must act honestly. In dealing with both parties, a buyer's agent may not make any misrepresentations on matters material to the transaction, such as the buyer's financial ability to pay, and must disclose defects of a material nature affecting the physical condition of the property which a reasonable inspection by the licensee would disclose.

A buyer wishing to be represented by a buyer's agent is advised to enter into a separate written buyer agency contract with the brokerage firm which is to work as their agent.

DISCLOSED DUAL AGENT
A disclosed dual agent WORKS FOR BOTH THE BUYER AND THE SELLER. To work as a dual agent, a firm must first obtain the informed written consent of the buyer and the seller. Therefore, before acting as a dual agent, brokerage firms must make written disclosure to both parties.

Disclosed dual agency is most likely to occur when a licensee with a real estate firm working as a buyer's agent shows the buyers properties owned by sellers for whom that firm is also working as a seller's subagent.

A real estate licensee working as a disclosed dual agent must carefully explain to each party that, in addition to working as their agent, their firm will also work as the agent for the other party. They must also explain what effect their working as a disclosed dual agent will have on the fiduciary duties their firm owes to the buyers and to the sellers. When working as a disclosed dual agent, a brokerage firm must have the express permission of a party prior to disclosing confidential information to the other party. Such information includes the highest price a buyer can afford to pay and the lowest price a seller will accept and the parties' motivation to buy or sell. Remember, a brokerage firm acting as a disclosed dual agent will not be able to put one party's interests ahead of those of the other party and cannot advise or counsel either party on how to gain an advantage at the expense of the other party on the basis of confidential information obtained from or about the other party.

If you decide to enter into an agency relationship with a firm which is to work as a disclosed dual agent, you are advised to sign a written agreement with that firm.

TRANSACTION BROKER

The New Jersey Real Estate Licensing Law does not require licensees to work in the capacity of an "agent" when providing brokerage services. A transaction broker works with a buyer or seller or both in the sales transaction without representing anyone. A TRANSACTION BROKER DOES NOT PROMOTE THE INTERESTS OF ONE PARTY OVER THOSE OF THE OTHER PARTY TO THE TRANSACTION. Licensees with such a firm would be required to treat all parties honestly and to act in a competent manner, but they would not be required to keep confidential any information. A transaction broker can locate qualified buyers for a seller or suitable properties for a buyer. They can then work with both parties in an effort to arrive at an agreement on the sale or rental of real estate and perform tasks to facilitate the closing of a transaction. A transaction broker primarily serves as a manager of the transaction, communicating information between the parties to assist them in arriving at a mutually acceptable agreement and in closing the transaction, but cannot advise or council either party on how to gain an advantage at the expense of the other party. Owners considering working with transaction brokers are advised to sign a written agreement with that firm which clearly states what services that firm will perform and how it will be paid. In addition, any transaction brokerage agreement with a seller or landlord should specifically state whether a notice on the property to be rented or sold will or will not be circulated in any or all Multiple Listing System(s) of which that firm is a member.

YOU MAY OBTAIN LEGAL ADVICE ABOUT THESE BUSINESS
RELATIONSHIPS FROM YOUR LAWYER.

THIS STATEMENT IS NOT A CONTRACT AND IS PROVIDED
FOR INFORMATIONAL PURPOSES ONLY.

THE NEW JERSEY
REAL ESTATE COMMISSION
CN 328
TRENTON, NJ 08625-0328
(609) 292-7053

Click for: NJ Real Estate Commission Web Site