More Info

What Services Does An Exclusive Buyer’s Agent Offer?

Seller’s Agent

Exclusive Buyer’s Agent

Can show you all the Business Listings in the MLS (Multiple Listing Service). Will show you all the businesses in the MLS, For Sale By Owner, distress sales, even properties that are not on the market!
Can tell you the price the seller’s are asking for the Business but cannot suggest an offering price. Will calculate the fair market value of the business for you, and assist you in developing a “Fair and Reasonable” offering price by using comparable sales data.
Can provide “raw” information on comparable businesses that have sold in the area. Not allowed to interpret that data for you. Will provide and interpret information on comparable businesses that have sold in the area and help you formulate an offering price and negotiating strategy.
Can convey your offer to the seller or their agent and convey their response back to you. Will negotiate on your behalf through the entire buying process offering advice and information every step of the way!
Can provide you with a “list” of title companies, inspectors, and other professionals for you to choose from but cannot recommend any particular company or professional. Will recommend title companies, inspectors, and other professional services you will need!
May tell you very little general information about the seller. Can tell you everything they can find out about the seller and their motivation for selling!
Must tell the seller everything they know about you, your financial status, and your motivation for buying. Will keep any information about you confidential if it would weaken your negotiating position!
“Thinks” in Seller’s terms (i.e.: Get the highest price possible from the buyer) “Thinks” in Buyer’s terms (i.e.: Get the lowest possible price and best terms for the Buyer, not the Seller).

 

Fiduciary Duties Of An Agent

Anyone who becomes an agent of a seller or buyer is deemed to be a fiduciary. Other examples of fiduciaries are trustees, executors, and guardians.

As a fiduciary, a broker is held by law to owe specific duties to his/her principal (the person who they are representing), in addition to duties or obligations set forth in a listing agreement, buyer representation agreement, or other contract of employment. Subagents of the broker also owe the same fiduciary duties to the broker’s principal. These specific fiduciary duties include:

  • Loyalty
  • Obedience
  • Disclosure
  • Confidentiality
  • Reasonable Care and Diligence
  • Accounting

Loyalty
One of the most fundamental fiduciary duties an agent owes to the principal. The duty obligates any broker to act at all times, solely in the best interests of the principal, excluding all other interests, including that of the broker.

An example of breach of loyalty is when a broker purchases a business or property listed with his/her firm, and immediately resells it at a profit. Such conduct is usually considered appropriate and lawful by persons who act at arms length, but a fiduciary would be considered to have stolen an opportunity for profit that rightfully belongs to the principal.

Sellers Agent

Exclusive Buyer’s Agent

Must do everything possible to gain an advantage for the Seller. Must do everything possible to gain an advantage for the Buyer.

Obedience
An agent is obligated to promptly and efficiently obey all lawful instructions of his/her principal that conform to the purpose of the agency relationship. However, the duty does not include an obligation to obey unlawful instructions, such as instructions to not market a listing to minorities or to misrepresent the condition of the listing.

Sellers Agent

Exclusive Buyer’s Agent

Must obey all lawful instruction of the Seller, is not obligated to obey instructions from the Buyer. Must obey all lawful instruction of the Buyer, is not obligated to obey instructions from the Seller.

Disclosure
An agent must disclose to the principal all known relevant and material information that pertains to the scope of the agency.
The duty includes any facts affecting the value or desirability of the listing, as well as any other relevant information pertaining to the transaction, such as the other party’s bargaining position, the identity of all potential purchasers, information concerning the ability or willingness of the buyer to offer a higher price, any intent to subdivide or resell the listing for a profit.

An agent’s duty of disclosure to his/her principal must not be confused with a broker’s duty to disclose any know material facts about the property value to non-principals. The duty to disclose known material facts is based on a broker’s duty to treat all persons honestly. The duty of honesty does not depend on the existence of an agency relationship.

Sellers Agent

Exclusive Buyer’s Agent

Must reveal any known material defects in the property.

Must NOT reveal information about traffic problems, poor school system, declining values, etc. since these items might make the listing less desirable to Buyers.

Must tell Buyer everything they can find out about the Seller including the motivation for selling and any reasons the Seller may have for wanting a quick sale.

Must tell Buyer everything they can find out about the lising, including traffic problems, poor school system, high crime rates, etc.

Confidentiality
An agent is obligated to safeguard his/her principal’s lawful confidences and secrets. Therefore, a broker must keep confidential any information that may weaken a principal’s bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a listing below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered.

The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller’s listing from the buyer, or to misrepresent the property’s condition. To do so constitutes misrepresentation and impose liability on both the broker and the seller.

Sellers Agent

Exclusive Buyer’s Agent

Must tell the Seller everything they can find out about the Buyer, including all financial details they can obtain.

Must conceal anything about the Seller that would help the Buyer gain an advantage, such as impending foreclosure, need to move in a hurry, need to sell to settle divorce, etc.

Must keep all information about the Buyer confidential, including the Buyer’s ability or willingness to pay more for the listing than they are offering as well as the Buyers motivation for buying.

Reasonable Care and Diligence
An agent is obligated to use reasonable care and diligence when pursuing the principal’s affairs. The standard of care expected of a buyer’s or seller’s broker is that of a competent licensed professional. By reason of his/her license, a broker is considered to have skill and expertise in subject matters superior to that of the average person.

As an agent who represents others in their dealings, a broker or salesperson is under a duty to use superior skill and knowledge while pursuing the principal’s affairs. However, no broker is expected to perform tasks or know information outside the scope of his/her license.

Licensees are not expected to perform services normally provided by engineers, lawyers, accountants, or other professionals. If concerns arise outside the scope of a broker’s responsibility, the broker should acknowledge that and suggest that the principal seek assistance from a reliable outside source.

Sellers Agent

Exclusive Buyer’s Agent

Must prepare themselves through education and study to competently represent the Seller in all matters. Must prepare themselves through education and study to competently represent the Buyer in all matters.

Accounting
An agent is obligated to account for all money or property that belongs to his/her principal entrusted to that agent. The duty compels a broker to safeguard any money, deeds, or other documents entrusted to them relative to their client’s transactions of affairs.

Sellers Agent

Exclusive Buyer’s Agent

Must account to Seller for any money or documents entrusted to them. Must account to Buyer for any money or documents entrusted to them.
FacebookTwitterGoogle+Share