Welcome To The River Region's Real Estate Information Center Serving Montgomery, Prattville, Millbrook, and Wetumpka Alabama 1-800-255-1592

Have you ever wondered, when dealing with professional lawyers, accountants and real estate agents, if the person your dealing with has your best interest at heart? If you have, you're among thousands of consumers wondering the same thing. This article is intended to help guide you through the maze of real estate agency.

Generally there are three types of agents:

A General Agent
A Special Agent
A Power of Attorney or Attorney in Fact

Each type of agency, as it's own purpose.

A general agent has the authority to perform all necessary acts for you. A good example would be a licensed professional your hire to manage your home while you take on an overseas assignment.

A special agent has broad powers to act on your behalf but is limited to those acts specifically outlined in the agency agreement. A good example is when you hire a real estate professional with only the authority to locate a buyer.

A power of attorney, also known as an attorney in fact, is a written agreement where you appoint an agent to act in your place. Powers of attorney are normally given for specific purposes such as to sign paperwork when the owner is out of town.

One of the most confusing areas to consumers within real estate is the concept of agency. Anytime you enter into discussions about real estate in the state of Alabama you must be provided an agency disclosure form. Most other states have similar laws and forms.

There are three types of special agent relationships in real estate in Alabama

The Single Agent…represents buyer or seller but not both
The Consensual Dual Agent…represents buyer and seller
The Transaction Broker…a facilitator doesn't represent buyer or seller

In general, your agent has a duty of trust, utmost care and must protect your interests. This is known as a fiduciary duty. In this capacity the agent must act in a manner that is consistent with your best interests and may not obtain any advantage over you through duress or misrepresentation. This includes the duty to disclose all facts known to the agent that would materially affect the value of or desirability of the property in question. The job, simply put, is to work for you and your interests.

It's important for consumers to understand that the agency relationship may change during the course of the professional relationship. For example, you are working with a real estate professional as a buyers agent. Up until today you've only looked at listings that are held with other broker offices. Today though, you are going to see and make an offer on a listing that is held by the firm your real estate professional is affiliated with. Your special buyer's agent has just become a dual agent.

As a dual agent, the professional has taken on the job of protecting both the buyer and sellers best interest. And may not, for example, without the express written permission disclose material facts about the buyer or seller. A good example: the agent could not disclose that the seller would accept a price less than the listing price or that the buyer would pay a price greater than that offered. Thanks to California law and the California Association of REALTORS®, you as the consumer must be informed and give consent for dual agency. Many other states have this same protection.

The Buyer's Agent of Montgomery, Inc. 1262 Perry Hill Road Montgomery, Al. 36081 David Price, Broker Licensed in Alabama since 1994 © 1996-2006 All Rights Reserved