Surely there must be a plethora of articles about the pros and cons of whether or not we should work with our clients as Buyer Agents or Transaction Brokers. But I would like to weigh in on MY side of the debate.
Here are the standard definitions given in Colorado materials:
- A Buyer’s Agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
- A Transaction-Broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer’s financial ability to perform the terms of a transaction and, if a residential property, whether the buyer intends to occupy the property. No written agreement is required.
The main difference, it is often noted, is the word ADVOCATE. A Buyer’s Agent has the ability and the responsibility to ADVOCATE for their clients. Many Agents used to ask, “Why would you work with a Client as a Buyer’s Agent when you can work with them as a Transaction Broker?”
My response to this question is not the word ADVOCATE, it is the word PERSONALITY. I can’t imagine being a neutral party in a transaction when I am representing someone. I can’t imagine not disclosing to my Client what information I know to help them make an informed decision. “Just the facts, ma’am, just the facts,” is not a manner that I could possibly adopt in doing my business.
So my default will continue to be Buyer’s Agent because I can’t imagine not getting excited and involved and ADVOCATING for someone with whom I’m working.
Buyer Agent or Transaction Broker was written by Mimi Foster