"Buyer Agency" has been around for sometime in the real estate business. It refers to right of home buyers to instruct a Realtor to represent their interests in a real estate transaction. This is distinct from "Seller Agency," where Realtors represent the interest of sellers.

Realtors, like attorneys, have certain obligations to those whom they represent. This is where the experience counts. This is called our fiduciary responsibility, and it is required by State law It consists of these things that we owe to our clients:

• CARE in the conduct of our business dealings. This means that we must exercise our best professional judgment at all times.



• CONFIDENTIALITY in our dealings. This means that we may not reveal to other interested parties confidential information that our clients tell us.



• LOYALTY to our clients and their best interests. This means that we may not put the interests of another party (or ourselves) over those of our client's.



• OBEDIENCE to the lawful and good-faith instructions of our clients.



• ACCOUNTABILITY for funds entrusted to our care. This applies in situations where a Realtor holds funds on behalf of a client (escrow money).



• DISCLOSURE of all information that pertains to our client's affairs. This means that we must tell our client everything we know that can help her/him in a real estate transaction.

Disclosure of material facts:

• relationship between agents and other parties
• existence of other parties
• properties true worth
• legal effect of important contract provisions

In terms of Buyer Agency, this all means that your Realtor must be an advocate for your interests in buying a property. Realtors who are Buyer Agents may not reveal to the sellers or their agent anything about your circumstances (how much you will pay, the fact that you must move quickly, etc.) that might give the seller an edge in negotiations. Buyer Agents must report to their clients everything they learn about the seller's situation so that the buyer has as much information as possible.

All Realtors, whether representing the buyer or the seller, must reveal all material information (the roof leaks, a new highway is being built nearby, etc.) about a property, but other information -- like their client's negotiating strategy or whether a home might be priced too high or too low -- can only be revealed to their client, not to the other party.

State law requires all Realtors to ask you to sign an Agency Disclosure Form on which you select Buyer or Seller Agency. Some Realtors will ask you to sign an "Exclusive Right to Represent" form, which is another matter altogether.

This is a very brief summary of Buyer Agency. Your Realtor can and will (and must) explain it to you in greater detail. If you'd like more information, please call us at 703-773-9300.