In this world where specialization is commonly practiced, there are always those who could do something better than we can, and likewise there will always be times in life when we will be needing someone’s service. In the same manner, if you are going to buy or sell a real estate, you will definitely need someone you can rely on to facilitate the process of buying and selling your property. In major decisions such as the buying and selling of a real estate, you will surely need the advice of an expert, someone who knows the “ins” and “outs” of the realty business. These realty experts will definitely act as intermediaries between a buyer and a seller. On the one hand, these real estate brokers or agents can readily act as intermediaries: on behalf of the sellers, they would look for someone who can buy and is willing to buy real properties; and on behalf of the buyers, they would look for sellers of real properties.
If you are a buyer, when you hire a real estate agent, the agent’s responsibility is to find you a property with a price that is according to your specifications. The agent usually would act to find the lowest possible price for his/her client. Yet, if in case you are the seller, your agent should try to sell your property at the highest possible price so that you can gain more from the sale of your property. Yet, sometimes, there are times that your agent is both working for you and your customer. This type of agent is a dual agent and the practice of dual agency is definitely unethical. This kind of practice is unethical because an agent who has agreed to work for a client has fiduciary duties towards his/her client. You may be asking about what fiduciary duties are. Well, fiduciary duties are legal duties which basically include confidentiality, care, obedience, loyalty, disclosure, and accounting. A real estate broker may lose his/her license if he/she is found to engage in dual agency. I once had a bad experience with an agent whom I thought I could trust. I was trying to buy a property somewhere in California and was looking for the best California real estate options. It was a very disappointing engagement with this particular agent considering the unethical way he dealt with me. In some states, dual agency is permitted provided there is a written agreement between the buyer and the seller and the agent about this dual agency. Likewise, dual agency can be allowed when both the buyer and the seller is represented by the same brokerage. Yet, in most cases, dual agency is not permitted because conflicts of interests may arise.
How to Become a Licensed Real Estate Broker?
Nowadays, to become a real estate broker, you are required to take a number of hours of classes and then have to pass the licensing exam of the state. Hence, real estate brokers are considered professionals with license on real estate brokering. Moreover, the real estate brokers usually engage in further studies to keep abreast of the trends and changes in real estate industry.