Agencies In The Practice Of Real Estate In The U.S. (Coursework Sample)

Agencies in the Practice of Real Estate in the U.S.
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Agencies in the Practice of Real Estate in the U.S
Real estate association is the representation of either party or both parties in a real estate business transaction. In other words, it is the act of involving an intermediary between the buyers and sellers of land. That said, this agency entails an agent who performs the role of an intermediary by locating vendors who have the motive to sell and the corresponding buyers who are willing to buy (Different Types of Real Estate Agents and What They Do, 2010). The English common law of agency is responsible for the initial setup of Real estate association in the United States. This company law provided the broker with a fiduciary connection with his clients. As a real estate agent, one obtains his payments in the form of commissions following a successful business deal between the buyer and seller he connects. In the UK, an estate agent is that firm or person who markets real estates on behalf of the clients though each country has a unique meaning for the term.
A buyer's agent is one who offers a hand to a potential buyer in acquiring property (Different Types of Real Estate Agents and What They Do, 2010). Creation of this agency is through oral or written agreement between the buyer and the agent. However, a written contract is legally abiding unlike the oral contract, which is almost impossible to prove. Hence, a broker’s share of the commission is not legitimate if the agreement is not in writing. After the creation of statute law to create a consumer agency, the buyer agency began in the 1990s where the brokerage firm has only to represent buyers and never sellers to render the existence of the connection.
Besides, the buyer’s agent has an obligation to perform their fiduciary duties to their clients extensively. These fiduciary functions include assessing the exact needs of the customer and the consequential allocation of the estate that fits their description. Also, the agent performs researches, presents offers to seller's agent and also negotiates on behalf of the buyer (Different Types of Real Estate Agents and What They Do, 2010). An agreement between the purchaser and his agent can terminate the agency. The expiry of the period agreed as well as defying the terms of the contract by either of the parties can also render the contract invalid. Therefore, to maintain the agency, both parties should be committed and as well effectively meet their obligations.
A listing agent is the agent works for the seller. In other words, the listing agent is the seller’s agent. Most sellers prefer to use actors in the sale of their property. Any agent who gets involved in in the disposal of a property is said to be a sub-agent of the seller's agent unless in the case where the agent has a valid contract to represent the buyer alone(Different Types of Real Estate Agents and What They Do, 2010).
The listing agent in the real estate agency helps the seller in pricing the house since he has an adequate knowledge of the local market and is capable of conducting a comparative market analysis. Besides, the agent provides advice on presentation of the house in a manner impressive to the buyer. In the rear, the agent represents the seller during negotiations regarding selling the house. The termination of the contract is by bankruptcy, death or insanity of either of the principal. The agency can also revoke the agreement at any time if the seller has incurred no loss.
In the rear, a dual agent is that agent who helps both the buyer and the seller. The formation of the agency is by signing of a dual agency agreement (What Is Dual Agency, 2014). The statement signed by the parties should include the terms of compensation. This agent should disclose legit information for both sides. It is illegal in all states for a dual ag...