Originally posted by: jer0608
Originally posted by: MonkeyK
If he tells someone that I will take less than the asking price, then he is not representing my best interests. So I would hope that he would not do that.
-edited to add the quote for context
In Massachusetts, at least, I believe that would be a serious violation of your contract with the realtor, if not the law. When I was buying my house, every realtor we spoke to made us read up on buyer/seller/dual agency and whether or not we understood it before we went any further. The idea is that the realtor you have employed can represent you as the seller (if you're...um..selling) or the buyer (in my case). They solely represent the interest of one or the other. They may not divulge any information to the other party without your permission, nor compromise the best interests of their client to make a sale. The only exception is if you knowingly agree to "Dual Agency".
Maybe MN has something similar? Perhaps some AT realtor's could elaborate.
Dual agency is when the real estate agent works for both the seller and the buyer.
When you, as the seller contract with the real estate agent to sell your house, you becoem their client. They have fiduciary obligations with you. They are to represent the property, not the people (seller). Unless you have given them permission in writing to offer your motivation (including minimum price you'll take), then they are in violation of the law. I can't speak for every state, but I'm pretty sure that all states have the same law.
If a prosecpctive buyer contracts with them as a buyer agent, then the agent works for both of you, which obviously poses some conflict of interest. That is called a dual agency, and in most if not all states, the law requires that this be disclosed to all parties in writing with acknowledgment from all parties. In a case wher there is a dual agency, the real estate agent has to walk a fine line. Both parties are clients and private inforamtion can not be shared between parties unless approved.
If a prospective buyer has not contracted the real estate agent to respreent them as a buyer agent, then that buyer is conseidered a "customer" not a client. Therefore the real estate agent does not have fiduciary obligations with them. In cases of open houses, a buyer walks in off the street - that's a customer, not a client (unless the agent previously met them and contracted with them as a buyer agent). In most states, they can't even become a buyer agent for a walk in like that because they already represent the seller.
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