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When a home buyer or home seller agrees to work with a real estate brokerage, they sign a representation agreement.

A home seller is represented by a listing brokerage. A signed agreement, between the seller and the listing brokerage, commits the brokerage, not just the listing agent, to working for the seller’s best interest in the transaction.

A home buyer deserves equal representation when buying a home.  A buyer can choose to work with an exclusive buyer brokerage. These brokerages do not represent home sellers. They only work with home buyers.

If a home buyer signs an agreement with a listing brokerage representing the seller, they agree to a dual agency. Dual agency is allowed in Virginia and Washington DC. Designated agency, a variation of dual agency, is allowed in Maryland.

Designated agency happens when a homebuyer agrees to work with an agent at the brokerage representing the seller. One agent for the seller, one agent for the buyer. Both agents work for the brokerage representing the home seller. The brokerage has a signed agreement with the seller with the expectation of getting the best price and terms for the seller.

Remember, sellers and buyers sign agreements with a brokerage, not an individual real estate agent.

Here is a description of dual agency taken from the Northern Virginia Association of  Realtors Legal Blog

• The agent will be unable to advise either seller or buyer as to the terms, offers, or counteroffers (except, however, that the dual agent may have already provided such advice to the seller prior to representing the buyer)

• The agent cannot advise the buyer as to the suitability of the property, or its condition (other than to make any disclosures as required by the law of any licensee representing a seller), and cannot advise either party as to repairs of the property (to make or request);
• The agent cannot advise either party in any dispute that might later arise relating to the transaction;
• The agent will be acting without knowledge of the client’s needs, the client’s experience in the market, or the client’s experience in handling real estate transactions unless he has gained that information from earlier contact with the client.

Home buyers, would this agreement serve your best interest in the real estate transaction? 

To further the point of who represents you in a real estate transaction, the following information is displayed on a required sign at Open Houses in Maryland,

“This is to advise you that the agent who is conducting this Open House REPRESENTS THE SELLER(S) AND IS REQUIRED BY LAW TO PROMOTE THE INTERESTS OF THE SELLER(S).

ANY INFORMATION YOU GIVE THIS AGENT IS NOT CONSIDERED CONFIDENTIAL under the Maryland Real Estate Brokers Act and could be disclosed to the seller of this property.

As a home buyer, you can choose to have full representation when purchasing your home. Remember, exclusive buyer brokerages never represent sellers, have no in-house inventory to sell, and no conflict of interest regarding representation.

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How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.