Understanding Agency and Representation in CT ...

Buyers and sellers in Connecticut are required to sign an agency representation agreement to elect an agency relationship or a disclosure form acknowledging that they understand which party the real estate agent represents in a transaction.

The Agency Relationship

The agency relationship is based on one person representing the interests of another person. Connecticut Real Estate agents are licensed by the state to represent a person in the purchase or sale of a property.

The type of relationship formed between the agent and the client is called a fiduciary relationship. A fiduciary relationship is one based on trust because the agent owes the following duties to the client ...

Loyalty
Obedience
Diligence
Disclosure
Confidentiality
Accountability
Reasonable Skill & Care

The responsibility of the real estate agent is defined by the state law relating to agents, the REALTORS® Code of Ethics and general principles of agency law. Connecticut offers four types of agency relationships ...

Buyer Agency
Seller Agency
Dual Agency
Designated Agency

The Four Types of Agency Relationships

An agency representation agreement must be signed every time a buyer or seller works with a different company to view real estate property.

Buyer Agency A Buyer’s Agent exclusively represents the nterests of the buyer in a real estate transaction. A Buyer’s Agent ... • Arranges property showings that meet the buyer’s needs. • Helps you obtain information about the home or property, community, schools, taxes, utilities and zoning. • Prepares a competitive market analysis on the property. • Counsels the buyer on what price to offer the seller. • Assists in making an offer with the buyer’s interests in mind by showing what other buyers are paying for property in the area. • Negotiates the best price and terms for the buyer. • Keeps the price capabilities and objectives of the buyer confidential. • Assists with the loan application process. • Monitors all dates, events and requirements for the buyer. • Attends the closing with the buyer.		Dual Agency Dual Agency occurs when a Buyer’s Agent shows a property to a buyer that is also represented by that REALTORS®’s firm, or when the Listing Agent shows real estate to a buyer who is also represented by the same firm. In Dual Agency situations, both the buyer and seller will be asked to sign a consent agreement. A Dual Agent owes both the buyer and seller equal representation and must... • Treat both parties fairly. • Not knowingly represent one party to the detriment of the other. • Disclose facts each party needs to make an informed decision. • To assist, as the Buyer and Seller are empowered to negotiate on their own behalf. • Assure confidentiality on each party’s price, terms and personal information.
Seller Agency A Seller’s Agent represents the interest exclusively of the seller in a real estate transaction. A Seller’s Agent ... • Prepares a competitive market analysis of the seller’s home or property. • Develops and implements effective marketing strategies for the seller, including asking price, staging and positioning. • Informs the seller how much the other homes and properties have sold for in the area. • Presents all offers and counsels seller on what price to accept. • Negotiates exclusively on the seller’s behalf. • Updates the seller on market conditions. • Works closely with seller to assure a smooth closing. • Monitors all dates, events and requirements for the seller. • Represents the seller’s interest at the buyer’s walk through inspection. • Attends the closing with the seller.		Designated Agency A REALTOR® firm may provide a Designated Buyer Agent for the buyer and a Designated Seller Agent for the seller from within the firm. The Designated Buyer Agent may perform all the services described under buyer agency for the buyer and the Designated Seller Agent may perform all of the services described under seller agency for the seller. The agents so designated are not dual agents, but the firm itself continues to be a Dual Agent.

Reprinted Courtesy of CONNECTICUT ASSOCIATION OF REALTORS®, INC.©