미국에서는 대부분 모기지론을 받아서 집을 구매하죠. 물론 집을 현금 100%를 주고 살 수도 있습니다. 하지만 100% 현금을 준비하기가 어렵고, 지금 같이 금리가 낮은 시기에는 오히려 모기지론을 받는 것이 더 유리하기도 합니다.
얼마 정도의 주택을 구입할 수 있는가는 다운페이와 인컴 그리고 크레딧 스코어에 따라서 정해집니다. 다운페이는 지불할 현금, 인컴은 소득, 크레딧 스코어는 신용 점수를 의미하는데요. 집 구입을 고려한다면 이 3가지를 최소 6개월에서 1년 전부터 미리 점검하고, 어느 정도까지 모기지 대출이 되는지를 알아봐야 합니다.
예산이 확인되었다면 이제 위치를 결정해야 합니다. 직장인이라면 출퇴근 거리를, 자녀가 있다면 학군을 고려하게 되죠. 문제는 가능한 예산 범위 안에서 원하는 모든 조건을 만족하는 집을 찾기가 어렵다는 것입니다.
따라서 어떤 것을 더 중요하게 볼 것인지 미리 우선 순위 리스트를 작성해 두어야 합니다. 그리고 우선 순위는 본인 뿐 만 아니라 배우자와 가족 모두의 의견이 반영되는 것이 좋습니다.
미국에는 싱글 하우스, 아파트, 콘도 등 다양한 주택 형태가 있습니다. 어떤 형태의 주택이 본인과 가족에게 맞을지도 잘 결정해야 하죠. 주택 형태를 결정하기 전에 싱글 하우스, 콘도, 아파트에 살아본 사람들의 의견도 미리 들어보시길 바랍니다.
한국에서 부동산 거래를 할 때 공인중개사가 필요하듯이 미국에는 부동산 에이전트(Realtor, 리얼터)가 필요합니다. 경험이 많은 분들은 리얼터 비용을 아끼기 위해 직접 진행하기도 하는데요. 첫 집 구매이거나 경험이 부족하다면 리얼터와 함께 프로세스를 진행하는 것이 좋습니다.
사전 융자 승인(Pre-approval)은 모기지론을 알아보는 단계입니다. 단, 이 때 주의할 점은 사전 융자 승인으로 나온 금액이 실제로는 100% 전부 나오지 않을 수도 있다는 점입니다. 그래서 사전 융자 승인을 받았더라도 어느정도 여유 자금을 준비해두는 것이 좋습니다.
그리고 가끔 사전 융자 승인을 받기 전에 집부터 찾는 분들이 있는데요. 집을 찾더라도 pre-approval을 받은 다른 바이어(buyer)와 경쟁에서 밀릴 수 밖에 없으며, 경쟁자가 없더라도 생각했던 예산과 달라서 집을 놓칠 수도 있습니다.
따라서 본격적으로 집을 찾기 전에 미리 사전 융자 승인을 신청해야 합니다.
사전 융자 승인을 받았다면, 이제 본격적으로 집을 찾기 시작하는데요. 미국에서는 집을 볼 때 오픈하우스(Open house)라는 것을 합니다. 셀러(seller) 측에서 미리 여러 바이어에게 일정을 공지하고 집을 공개하는 것이죠.
마음에 드는 집을 선택했다면 오퍼(offer)를 작성하고 셀러에게 보냅니다. 오퍼는 일종의 계약서 초본이라고 할 수 있는데요. 셀러가 오퍼를 수락(accept)하면 본격적으로 계약 협상이 시작됩니다.
셀러는 바이어의 오퍼에 대해 카운터 오퍼(SCO, Seller’s Count Offer)를 보내기도 합니다. 카운터 오퍼는 바이어가 보낸 계약 조건을 변경하여 셀러에게 유리하도록 하는 것인데요. 바이어도 셀러의 카운터 오퍼를 받고 다시 카운터 오퍼(BCO, Buyer’s Count Offer)를 보낼 수 있습니다.
카운터 오퍼는 계약 협상을 문서로 하는 것입니다. 그래서 카운터 오퍼를 주고 받는 횟수에는 별다른 제한이 없는데요. 평균적으로는 1~4번 정도 사이에서 협상이 마무리 되곤 합니다.
오퍼가 수락(accept)되면 에스크로(escrow)를 오픈합니다. 에스크로란 3자 중개 회사를 의미하며, 에스크로가 오픈되면 주택 구입 가격의 약 3~5% 정도를 계약금으로 보내야 합니다. 참고로 계약금을 선입금하는 것을 EMD(Earnest Moeny Deposit)라고 합니다.
일반적으로 에스크로 오픈 후 3일 안에 계약금을 송금(deposit) 하지 않으면 다른 바이어에게 우선 협상 권리가 넘어갑니다. 이를 에스크로가 취소(캔슬)되었다고 하는데요. 참고로 에스크로 캔슬에 대한 기간이나 규정은 계약서마다 다를 수 있기 때문에 주의해야 합니다.
에스크로가 오픈되고 클로징 될 때가지의 기간은 보통 30~45일 정도 기간이 소요됩니다. (인스펙션 평균 기간 15일 포함) 미국 동부 지역에서는 에스크로를 오픈하지 않고 변호사 사무실이나 타이틀 보험 회사에서 역할을 대체하기도 합니다.
셀러는 디스클로저(Disclosure)를 바이어에게 공개 합니다. 즉, 셀러만 알고 있던 집과 관련된 정보가 있다면 이에 대해 자세히 알려주는 과정이라고 볼 수 있습니다.
바이어는 그 Disclosure 내용을 모두 포함해서 홈 인스펙션(Home Inspection)을 진행하게 됩니다. 혹시라도 집에 더 있을 문제점을 밝히기 위해 전문가를 고용하는 것인데요. 인스펙션은 대략 15일 이내 정도 소요되며 바이어도 직접 참관할 수 있습니다.
그리고 목조 주택에서 빼놓지 말아야 하는 것이 터마이트 인스펙션(Termite Inspection)입니다. 터마이트(Termite)란 집을 갉아 먹는 해충을 의미하는데요. 터마이트 피해는 미국에서는 발생하는 주택 피해 중에 상당수를 차지하고 있기도 합니다.
인스펙션을 통해 문제점이 발견되면 셀러에게 수리나 크레딧을 요청 할 수 있습니다. 이 부분도 셀러와 협상해야 것이며, 보통 셀러가 수리하는 것보다 수리에 들어가는 비용을 크레딧으로 받는 것이 조금 더 깔끔합니다.
어프레이절은 은행에서 주택의 가치를 평가하는 절차입니다. 융자 승인 전에 이루어지며, 만약 주택 구입 가격에 비해 감정 가격이 너무 낮게 측정되면 에스크로 캔슬 사유(appraisal contingency)가 되기도 합니다.
감정절차는 빠르면 디파짓과 인스펙션 단계에 이루어지기도 하고, 늦어지면 인스펙션 후에 나오기도 합니다.
컨틴전시(contingency)란 에스크로 오픈 후 계약이 취소될 수 있는 조건들을 의미합니다. 셀러와 바이어가 각각 컨틴전시를 걸 수 있으며, 보통 바이어의 컨틴전시 조건이 더 많습니다.
컨틴전시 리무브(Contingency Remove)는 바이어가 100% 집 구입을 확정 하는 단계입니다. 즉, 바이어가 주택을 구입하겠다는 확실한 의사 표시를 하는 것입니다. 따라서 만약 컨틴전시 리무브 이 후 계약을 취소하거나 문제가 발생하게 되면 모두 바이어의 책임(금전적 손실 포함)이 됩니다.
컨틴전시 리무브는 보통 에스크로가 오픈 된 후 약 15~17일 후에 이뤄집니다. (론 컨틴전시 리무브는 20일 이후) 바이어는 컨틴전시 리무브에 싸인하기 전에 놓친 부분은 없는지 재차 확인해야 하는데요. 싸인 이 후에 계약을 취소하면 디파짓한 계약금을 돌려 받을 수 없기 때문입니다.
컨틴전시 리무브까지 되면 거의 집 구입을 확정하게 된 것입니다. 이제 집 구입이 결정되었기 때문에 집 보험(Home Insurance)을 미리 알아봐야 하는데요. 융자를 받으면 렌더가 클로징할 때 집 보험료 1년치를 미리 납부하라고 하기 때문에 미리 어떤 보험을 선택할지 결정해두는 것이 좋습니다. (아래 글 참고)
파이널 인스펙션은 셀러가 고쳐주기로 약속했던 부분이 제대로 고쳐졌는지 바이어가 직접 확인하는 단계입니다. 셀러가 고쳐줄 부분이 없었더라도 에스크로가 클로징되기 전에 셀러가 실수로 집을 망가뜨리거나 하는 일도 있기 때문에 이 단계가 필요합니다. 만약 이 부분에서 문제가 발견되었다면 셀러와 다시 얘기해봐야 합니다.
은행의 융자 승인 서류가 에스크로에 도착하면 융자 승인이 완료된 것으로 봅니다. 이 서류는 보통 100페이지가 넘는 분량을 가지고 있기도 한데요. 이 단계가 거의 주택 구입의 마지막 단계라고 할 수 있습니다.
파이널 인스펙션과 융자 승인이 모두 완료가 되었다면 에스크로 회사로 다운페이할 돈을 송금합니다. 은행에서 승인된 융자 금액과 바이어가 지불해야 하는 다운페이먼트 금액, 그리고 셀러가 내야하는 세금과 기존 융자 등 여러가지 금액을 에스크로에서 계산하고 마지막으로 셀러에게 송금되어 집니다.
보통 에스크로 클로징 전날이나 당일에 에스크로 회사로 융자 금액이 송금됩니다. 그러면 에스크로 회사에서는 소유권 이전 등기를 신청하게 됩니다. 보통 오전에 등기 신청을 하면 오후 쯤에 이전되었다고 연락이 오게 됩니다. 등기가 완료되면 소유주의 이름이 셀러에서 바이어로 바뀌게 되는 것이죠.
한국의 등기부등본과 비슷한 개념으로 미국에는 타이틀 디드(Title Deed)라는 것이 있습니다. 줄여서 타이틀 또는 디드라고 하는데요. 혹시 모를 소유권 분쟁을 예방하기 위해 타이틀 보험을 가입하기도 합니다.
셀러는 타운에서 집을 팔 수 있는 검사를 받고 허가증(certificate of occupancy)을 발부 받아 바이어에게 전달합니다. 그리고 타이틀 회사에서 클로징 서류를 만들어서 합의된 날짜에 클로징을 하게 됩니다.
에스크로 클로징 일정도 셀러와 협상하게 됩니다. 보통 바이어는 금요일을 선호하고 셀러는 월요일을 선호하는 경향이 있습니다. 바이어는 금요일에 클로징하고 키를 받고 주말에 이사하고 싶어하고, 셀러는 주말에 이사하고 월요일에 키를 넘기기 원하기 때문이죠.
클로징 비용으로는 변호사비, 타이틀 검사비, 타이틀 보험비, 집 보험비 등기비 3개월분 부동산 세금 등이 포함됩니다.
클로징 후 2달이 지나면 변호사 사무실로 등기서류가 배달됩니다. 이 때 성인 자녀나 배우자 이름을 등기에 추가할 수 있습니다.
이제 이사를 해야 합니다. 클로징과 이사 일정이 잘 조율되었다면 문제 없이 진행할 수 있을 텐데요. 날짜가 꼬인 경우 호텔이나 다른 거처에 머물기도 합니다. (아래 글 참고)
이사할 때는 업체를 이용하거나 직접 유홀(U-Haul)을 이용해서 할 수도 있습니다. 예전에 무버(mover)를 쓰지 않고 직접 이사를 해봤는데, 거의 일주일동안 앓아 누웠던 경험이 있습니다. 그래서 이번에 이사에서는 무버를 고용하고 유홀 트럭은 제가 직접 운전하였습니다.
집 구입과 이사가 완료되면 이제 본격적으로 집을 하나씩 고치고 관리해나가야 합니다. 미국은 낡고 오래된 집이 많기 때문에 집 수리나 관리 방법에 대해서도 공부를 많이 해야하죠. 지붕이나 냉난방, 전기 시스템도 주기적으로 확인해야 하며, 백야드가 있다면 잔디 관리도 해줘야 합니다.
TYPES OF LISTING AGREEMENT
Exclusive right-to-sell (or lease)
Exclusive agency
Open listing
Net listing
Buyer and tenant agency agreement
Transaction broker agreement
Multiple listing
A broker may represent any principal party of a transaction: seller, landlord,
buyer, tenant. An owner listing authorizes a broker to represent an owner or
landlord. There are three main types of owner listing agreement: exclusive rightto-sell (or lease); exclusive agency; and open listing. Another type of listing,
rarely used today and illegal in many states, is a net listing. The first three forms
differ in their statement of conditions under which the broker will be paid. The
net listing is a variation on how much the broker will be paid.
A buyer agency or tenant representation agreement authorizes a broker to
represent a buyer or tenant. The most commonly used form is an exclusive rightto-represent agreement, the equivalent of an exclusive right-to-sell. However,
exclusive agency and open types of agreement may be also used to secure a
relationship on this side of a transaction.
Though not a distinct type of listing agreement, multiple listing is a significant
feature of brokerage practice. Multiple listing is an authorization to enter a listing
in a multiple listing service.
Exclusive rightto-sell (or lease) The exclusive right-to-sell, also called exclusive authorization-to-sell and,
simply,
the exclusive, is the most widely used owner agreement. Under the terms of this
listing, a seller contracts exclusively with a single broker to procure a buyer or
effect a sale transaction. If a buyer is procured during the listing period, the
broker is entitled to a commission, regardless of who is procuring cause. Thus, if
anyone-the owner, another broker– sells the property, the owner must pay the
listing broker the contracted commission.
The exclusive right-to-lease is a similar contract for a leasing transaction. Under
the terms of this listing, the owner or landlord must pay the listing broker a
commission if anyone procures a tenant for the named premises.
The exclusive listing gives the listing broker the greatest assurance of receiving
compensation for marketing efforts.
In some states, an exclusive right-to-sell listing is enforceable only if it is in
writing and has an expiration date. Some states do not require the agreement to
be in writing, but if it is in writing, it must have an expiration date.
Exclusive agency An exclusive agency listing authorizes a single broker to sell the property and
earn a commission, but leaves the owner the right to sell the property without the
broker’s assistance, in which case no commission is owed. Thus, if any party
other than the owner is procuring cause in a completed sale of the property,
including another broker, the contracted broker has earned the commission. This
arrangement may also be used in a leasing transaction: if any party other than the
owner procures the tenant, the owner must compensate the listing broker.
An exclusive agency listing generally must have an expiration date. Most states
allow either an oral or written agreement.
Open listing An open listing, or, simply, open, is a non-exclusive authorization to sell or lease
a property. The owner may offer such agreements to any number of brokers in
the marketplace. With an open listing, the broker who is the first to perform
under the terms of the listing is the sole party entitled to a commission.
Performance usually consists of being the procuring cause in the finding of a
ready, willing, and able customer. If the transaction occurs without a procuring
broker, no commissions are payable.
Open listings are rare in residential brokerage. Brokers generally shy away from
them because they offer no assurance of compensation for marketing efforts. In
addition, open listings cause commission disputes. To avoid such disputes, a
broker has to register prospects with the owner to provide evidence of procuring
cause in case a transaction results.
An open listing may be oral or written.
Net listing A net listing is one in which an owner sets a minimum acceptable amount to be
received from the transaction and allows the broker to have any amount received
in excess as a commission, assuming the broker has earned a commission
according to the other terms of the agreement. The owner’s “net” may or may not
account for closing costs.
For example, a seller requires $75,000 for a property. A broker sells the property
for $83,000 and receives the difference, $8,000, as commission.
Net listings are generally regarded as unprofessional today, and many states have
outlawed them. The argument against the net listing is that it creates a conflict of
interest for the broker. It is in the broker’s interest to encourage the owner to put
the lowest possible acceptable price in the listing, regardless of market value.
Thus the agent violates fiduciary duty by failing to place the client’s interests
above those of the agent.
Buyer and tenant
agency
agreements Buyer and tenant agency agreements create a fiduciary relationship with the
buyer or tenant just as seller listings create a fiduciary relationship with the seller.
Generally, buyer and tenant representation agreements are subject to the same
laws and regulations as those applying to owner listings. Thus:
a representation agreement may be an exclusive, exclusive
agency, or open listing. As with owner listings, the most widely
used agreement is the exclusive. In this arrangement, the buyer
agrees to only work with the buyer representative in procuring a
property.
an exclusive listing generally must have an expiration date along
with other requirements of a valid listing.
state laws require an exclusive authorization to be in writing
Duties of the Agent. At the formation of the relationship, the buyer agent has the
duty to explain how buyer or tenant agency relationships work. This is
culminated by a signed agreement where the principal understands and accepts
these circumstances. During the listing term, the buyer or tenant agent’s principal
duties are to diligently locate a property that meets the principal’s requirements.
In addition, the agent must comply with his or her state agency-disclosure laws
which may differ from those of traditional listing agents. This involves timely
disclosures to prospective sellers and their agents, usually upon initial contact.
Transaction broker
agreement In terms of agency, a transaction broker is in a non-agency relationship with the
seller or buyer. The agent is not bound by fiduciary duties to either party.
Nevertheless, transaction brokers enter into binding agreements with buyers and
sellers to complete transactions. Such agreements may be exclusive or nonexclusive. Like conventional listings, the transaction brokerage agreement binds
the principal to a compensation agreement in the event the broker procures a
property or a buyer. Typical agreements affirm the nature of the relationship,
contain expiration dates, and describe the terms of the agreement, such as the
type of property desired or the price a seller deems acceptable.
Like other listing agreements, transaction broker agreements vary among the
states where this form of relationship is practiced.
Multiple listing A multiple listing is not a distinct listing contract but rather a provision in an
exclusive listing authorizing the broker to place the listing into a multiple listing
service.
A multiple listing service is an organization of member brokers who agree to
cooperate in the sale of properties listed by other brokers in exchange for a share
of the broker’s resulting commission.
The authorization enables and requires the broker to disseminate the listing
information in a timely fashion so that members in the organization can
participate in the sale of the property as subagents.
REVIEW OF LEGAL FOUNDATIONS
Agency law
Contract law
A listing agreement, the document that puts an agent or broker in business, is a
legally enforceable real estate agency agreement between a real estate broker and
a client, authorizing the broker to perform a stated service for compensation. The
unique characteristic of a listing agreement is that it is governed both by agency
law and by contract law.
Agency law
The cornerstones of agency law in the context of a listing agreement are:
definition of the roles of parties involved
fiduciary duties of the agent
agent’s scope of authority
Parties. The principal parties to the contract are the listing broker and the client.
The client may be buyer, seller, landlord or tenant in the proposed transaction.
Legally, the broker is the client’s agent. The principal party on the other side of
the transaction is a customer or a potential customer, called a prospect. A broker
or salesperson who assists the listing broker in finding a customer is an agent of
the listing broker and a subagent of the client. A broker who represents the party
on the other side of the transaction is an agent of that party, and not an agent of
the listing broker, unless a dual agency arrangement is specifically allowed.
Fiduciary duties. A listing agreement establishes an agency relationship between
agent and client that commits the agent to the full complement of fiduciary duties
to the client in fulfilling the agreement.
Scope of authority. Customarily, a listing is a special agency, or limited agency,
agreement. Special agency limits the scope of the broker’s authority to specific
activities, generally those which generate customers and catalyze the transaction.
A special agency agreement usually does not authorize a broker to obligate the
client to a contract as a principal party, unless the agreement expressly grants
such authorization or the client has granted power of attorney to the broker. For
example, a listing broker may not tell a buyer that the seller will accept an offer
regardless of its terms. Telling the offeror that the offer is accepted would be an
even more serious breach of the agreement.
Under agency law, a client is liable for actions the broker performs that are
within the scope of authority granted by the listing agreement. A client is not
liable for acts of the broker which go beyond the stated or implied scope of
authority.
Thus, in the previous example, the seller would not be liable for the broker’s
statements that the offer would be accepted or was accepted, since the broker did
not have the authority to make such statements. A broker who exceeds the scope
of authority in the listing agreement risks forfeiting compensation and perhaps
even greater liabilities.
Contract law
Bilateral or unilateral agreement. Listings may be bilateral or unilateral,
depending on the type of listing and the wording of the agreement. An open
listing is a unilateral agreement in that the seller promises to pay a commission to
any agent who produces a buyer but no agent promises or is obligated to take any
action. On the other hand, most exclusive listings are bilateral agreements
because of wording that promises the due diligence of the agent to procure a
buyer in return for the seller’s promise to pay a commission if a buyer is
produced.
Validity. A listing agreement must meet the requirements for a valid contract to
be enforceable.
Termination. A listing, like any contract, may terminate for any of the following
causes: performance, infeasibility, mutual agreement, rescission, revocation,
abandonment, lapse of time, invalidity, and breach.
Legal form. A valid listing may be oral or written. However, many states
consider only a written listing to be enforceable, particularly an exclusive rightto-sell listing. In practice, a broker should get every listing in writing and make
sure it clearly states what the broker is authorized to do and how the broker will
be paid. An oral listing, even if enforceable, limits a broker’s ability to remedy
problems:
a contested oral listing must be supported by considerable
evidence to be enforced
a broker may not be able to sue a principal for damages incurred
under an oral lease
if the client dies, the broker may not be able to obtain
compensation for a successfully performed oral listing
An express listing, verbal or written, manifestly authorizes the broker to pursue
certain actions for the client. Clients and agents may also create an implied
agency listing based on substantive actions rather than on an express agreement.
For example, if a seller allows a broker to undertake certain activities toward
effecting a transaction without a specific authorization, but with full knowledge
and consent, an implied agency may have been created. Consequently, if the
principal proceeds with a customer procured in this manner, he or she may be
liable to the broker for compensation. Conversely, the agent may be held
responsible for fulfilling fiduciary duties imposed by the implied agency
Assignment. Since a listing agreement is a personal service contract, it is not
assignable. In particular, a broker cannot assign a listing to another broker.
AGENCY DISCLOSURE RULES
Objectives of disclosure
Seller agent disclosures
Buyer agent disclosures
Dual agent disclosures
Facilitator disclosures
Traditionally, brokers and agents have disclosed to customers whose interests it is
that they are serving. This traditional ethic is now, in many states, required by
law. Agents must know what agency disclosures they have to make, to whom,
and when in the business relationship they must make them.
Objectives of
disclosure Disclosure removes confusion about who an agent is working for. It may obviate
complaints arising from customers and clients who feel they have been deceived.
Specifically, the requirement to disclose aims to:
notify clients and customers about whom the agent represents
inform clients and customers of the fiduciary duties and standards
of care the agent owes them
inform prospective clients and customers that they have a choice
in how they are represented
obtain acknowledgement and acceptance of the disclosure from
the principal parties
Recent legislation requires an agent to disclose to all parties the fact that the
agent represents one party and does not represent the other. In other words, an
agent must inform client and customer that the agent represents the client and
does not represent the customer (unless it is a dual agency). An agent must
disclose agency relationships whenever there is a transfer of a real estate interest,
whether the interest is a fee, partial fee, exchange, leasehold, sublease,
assignment, air right or subsurface right.
Seller agent
disclosures Client disclosure. Depending on state regulations, an agent who intends to
represent a seller or owner must disclose the import of the proposed agency
relationship in writing before the listing agreement is executed. The agent must
inform the seller or landlord in writing that the agent will be representing the
client’s interests as a fiduciary, and will not be representing the interests of any
potential buyer. Any subsequent sale or lease contract with a customer should
confirm this disclosure.
Customer disclosure. A listing agent must disclose in writing to a buyer or
tenant that the agent represents the owner in the transaction. This disclosure must
occur before or at the first “substantive contact” with the customer prospect. The
disclosure must also be confirmed in any subsequent sale or lease contract.
Substantive contact. Subject to variations in state regulation, “substantive
contact” between listing agent and customer occurs whenever the agent is:
Chapter 11 Agency 151
showing the prosp
showing the prospect a property
eliciting confidential information from a prospect regarding
needs, motivation, or financial qualification
executing a contractual offer to sell or lease
Exclusions. Interaction between a seller’s agent and a customer is not always
substantive. Possible instances that might be excluded from the requirement of
disclosure are:
attendance at, or supervision of, an open house, providing the
agent does not engage in any of the contacts described above
preliminary “small talk” concerning price ranges, locations, and
architectural styles
responding to questions of fact regarding advertised properties
Oral disclosure. If an agent becomes involved in a substantive contact over the
phone or in a such way that it is not feasible to make written disclosure, the agent
must make the disclosure orally and follow up with a written disclosure at the
first face-to-face meeting.
Buyer agent
disclosures Client disclosure. An agent who plans to represent a buyer or tenant must
disclose the import of the proposed agency relationship in writing before the
representation agreement is executed.
Customer disclosure. A buyer agent must disclose the agency relationship to the
seller or seller’s agent on first contact. Substantive contact is assumed.
Dual agent
disclosures Informed written consent. An agent who desires to operate in a dual agency
capacity must obtain the informed written consent of all parties. Subsequent
contracts should confirm the disclosure. “Informed written consent” means both
parties have read, understood, and signed an acceptable disclosure form.
Prohibited disclosures. State regulations prohibit a dual agent from making
certain disclosures. For instance, a dual agent, unless expressly instructed by the
relevant party, usually cannot disclose:
to the buyer that the seller will accept less than the listed price
to the seller that the buyer will pay more than the price submitted
in a written offer to the seller
the motivation of any party concerning the transaction
that a seller or buyer will agree to financing terms other than
those
offered
Facilitator
disclosures Rules for disclosing a transaction broker’s status of non-agency are similar to
those of dual agency. The agent must provide written notice to all parties or their
agents on first becoming a transaction broker or on the first substantive contact,
whichever comes first.
C.FORMS OF REAL ESTATE AGENCY
Single agency
Subagency
Dual agency
No agency
No subagency
The primary forms of agency relationship between brokers and principals are:
single agency, dual agency, and subagency. In a fourth kind of relationship,
referred to as transaction brokerage, no agency relationship exists in the
transaction. Finally, some states are beginning to disallow subagency
altogether. Students are advised to ascertain which agency relationships are
allowed and practiced in their particular state.
Single agency
The agent represents one party in a transaction. The client may be either seller or
buyer.
Seller agency. In the traditional situation, a seller or landlord is the agent’s client.
A buyer or tenant is the customer.
Buyer agency. Recently, it has become common for an agent to represent a
buyer or tenant. In this relationship, the property buyer or tenant is the client and
the property owner is the customer.
Real estate vernacular calls an agent of the seller or owner the listing broker. An
agent who works for the listing broker and who obtained the listing is the listing
agent. A broker who represents a buyer is the buyer’s broker. One who does
this as a specialization is a buyer broker. A broker or salesperson who
represents tenants is a tenant representative.
Subagency
In a subagency, a broker or licensed salesperson works as the agent of a broker
who is the agent of a client. Subagents might include a cooperating licensed
broker, that broker’s licensed salespeople, and the listing broker’s licensed
salespeople, all of whom agree to work for the listing broker on behalf of the
client. In effect, a subagent is an agent of the broker who is agent of the client.
The subagent owes the same duties to the agent as the agent owes to the client.
By extension, a subagent owes all the fiduciary duties to the client.
Outside “co-brokers” and agents. It is common practice for brokers and
salespersons to “cooperate” with a listing broker in finding buyers or tenants. A
listing broker, in return, agrees to share the commission with a cooperating broker.
It is cooperating brokers who form multiple listing services to facilitate the
process of bringing together buyers and sellers.
The broker’s salespersons. All of the listing broker’s salespeople who have
agreed to work for the broker to find a customer are subagents of the listing
broker and owe the fiduciary duties to the broker and, by extension, to the
broker’s client.
Dual agency
Dual agency means representing both principal parties to a transaction. The agent
represents both buyer and seller or tenant and owner. For instance, if a
salesperson completes a buyer agency agreement with a party on behalf of a
broker, and the party then becomes interested in a property listed by the broker,
the broker becomes a dual agent.
Dual agency has become increasingly prevalent with the advent of buyer and
tenant representation. Dual agency may arise from voluntary, specific agreement
between the principal parties or from the parties’ actions, much like implied
single agency.
Conflict of interest. Dual agency contains an inherent conflict of interest.
Since many of an agent’s fiduciary duties can only be rendered to one party,
dual agency is, by definition, difficult, if not impossible.
Written, informed consent. In states that permit dual agency, the agent must
meet strict disclosure requirements, and principals must agree in writing to
proceed with the dual agency relationship.
Disclosed (voluntary) dual agency. The parties to a transaction may create a
dual agency by giving written consent in disclosure forms, confirmation forms,
and sale contract forms. For example, an agent represents a buyer who becomes
interested in a property that the agent has listed with the seller. The agent then
discloses the relationship with the principals to both principals, and the principals
agree in writing to move ahead. A disclosed dual agency is thus voluntarily
created.
Implied and undisclosed dual agency. If a broker or agent acts in any way
that leads a customer to believe that the agent is representing the customer, a
dual agency has potentially been created. For example, a buyer makes
confidential disclosures to the agent who works for the seller and exhorts the
agent to keep them confidential. The buyer wants the house but knows he is
going to lose his job in a month and probably will not qualify for financing. If
the agent agrees to keep the information confidential, the agent has not only
created an agency relationship with the buyer, but is now in a dual agency
situation. Moreover, if the agent fails to disclose the buyer’s confidence to the
seller, the agent has violated fiduciary duty to the seller.
Duties of a disclosed dual agent. A dual agent’s first duty is to disclose the
agency relationship to both principal parties or to withdraw from one side of the
duality. After disclosing, the agent must obtain the written consent of both
parties.
If both parties accept the dual agency, the agent owes all the fiduciary duties to
both parties except full disclosure, undivided loyalty, and exclusive
representation of one principal’s interests.
No agency
In recent years, the brokerage industry has striven to clear up the question of who
works for whom, and who owes fiduciary duties to whom. A recent solution
allows a broker to represent no one in a transaction. That is, the broker acts as a
transaction broker, or facilitator, and is not an agent of either the buyer or
seller. In this relationship, the facilitator does not advocate the interests of either
party.
Duties of the transaction broker, or facilitator. In the role of transaction
broker, the broker’s duties and standards of conduct are to
account for all money and property received or handled
exercise reasonable skill and care
provide honesty and fair dealing
present all offers in a timely fashion
assist the parties in closing the transaction
keep the parties fully informed
advise the parties to obtain expert advice or counsel
disclose to both parties in residential sale transactions all material
facts affecting the property’s value
protect the confidences of both parties in matters that would
materially disadvantage one party over the other.
Duties not imposed on the transaction broker. Since there are no fiduciary
duties binding the transaction broker, the broker is held to standards for dealing
with customers as opposed to clients. These include honesty, fair dealing, and
reasonable care. The transaction broker is under no obligation to inspect the
property for the benefit of a party or verify the accuracy of statements made by a
party.
As state regulatory authorities formalize the facilitator role, it is expected that
brokers will have to obtain written consent from the principal parties, just as in
the case of dual agency.
No subagency
As another response to the problem of ‘who works for whom,’ some states have
recently moved in the direction of disallowing subagency. In this scenario,
subagency is replaced by buyer agency and seller agency only. In other words, an
agent either represents the buyer directly, or the seller directly. An agent who
shows a buyer a property either represents the buyer, or is in fact the listing
agent. Note that this arrangement need not change traditional compensation
structures: an agent may represent a buyer and still receive a portion of the
commission paid by the seller.
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