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Know the DifferenceA client is a party who has signed an agency employment agreement with me for buying, selling or consultation. I owe a fiduciary duty to clients. It is my Office Policy to work only with clients on those tasks that require a real estate licensee in Arizona. My Office Policy in Florida is that all types of representation will be explained to my buying and selling prospects, but I generally work as a Nonrepresentative unless there is some over-riding reason that a Transaction Broker or Single Agent agreement is in the prospect's best interests. Because I am an active marketer, being your marketing or transaction broker on Florida transactions should work primarily to your benefit. Should you wish to utilize services which do not require a real estate licensee, AND have no need for such licensee services, I recommend our independent contractor degreed marketing professionals. When SellingIn Arizona as a seller, the most important point in hiring a real estate broker is to keep in mind that you need an advocate to help you get the most for your property, in the least amount of time with as few problems as possible. In Arizona it is not common in smaller residential and commercial transactions for buyers and sellers to consult with attorneys, or to use attorneys for the closing. In many instances investors only use the escrow/title company. In Florida it is more common to use attorneys for real estate closings. I recommend that you always have all real estate contracts reviewed by a competent legal professional, and when possible, do as the larger investors do and have your real estate attorney close the transaction. Your broker needs to be an expert in real estate financial analysis, market analysis and negotiating. Your broker also needs experience in handling the disclosure requirements sellers must make in compliance with federal and state laws regarding the sale and transfer of property. I have a list of more than 60 items which sellers may need to disclose when selling property. Would you be able to list all of them? When BuyingI believe Arizona buyers also need an advocate in negotiating and obtaining authoritative sources for any information concerning your target property that may be a material issue. For instance, although Arizona state law does not require that sellers disclose “stigmas” affecting their property, and the seller’s agent may be absolved of disclosure as well, you may still have an interest in determining if such information would affect the price you would be willing to pay. In Florida, it may also be to a buyer's benefit to employ a broker as a single agent. Dual agency is not legal in Florida. In Arizona dual agency is practiced as often as possible by most brokers (called "double dipping because the agent gets both sides of the commission.) When was the last time you were willing to let your attorney operate as a dual agent for both yourself and your opposition? Whether in Arizona or Florida, I will only work in a single agency capacity for a prospect who requires fiduciary-level services. In order to become a client, instead of a customer, a scope of services agreement and an exclusive employment agreement must be signed as part of our office policy. It is my policy never to act as an agent for someone without written agreements defining the scope of services I am to provide. One cannot serve two masters well. What is "Agency?"Agency is when a contract is formed whereby an agent represents another who has given authority to do so. I have an Agency Policy that requires a written agreement, outlining the scope of my services, before I will become any party’s “agent” in either Arizona or Florida. Although no longer required by Arizona law (for buyers), I believe a written “scope of service” buyer's broker agreement to be a prudent, reasonable business standard of care. Florida law requires a notice be given to all parties when utilizing the services of a real estate licensee. Click here to see a part of that notice. I strive to provide the best personal service to my prospects while reducing the possibility of misunderstandings. For buying prospects who want to remain in “customer” status for services requiring a real estate license in Arizona, it is my policy to refer the customer to another broker who will work with you on those terms. In Arizona your listing broker is always your fiduciary agent. I am happy to work as your transaction broker in Florida, whether you are buying or selling, and you wish to expand the scope of services to be provided beyond that of a Nonrepresentative. Marketing Only - No Real Estate Licensee Services When a party only needs marketing services,
I recommend
my marketing professional subcontractors who serve only customers not
needing the services of a real estate licensee.
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