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The common thought among real estate agents, is that the more you tell them, the better they can negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Agents working for buyers have 3 possible options: They can represent the buyer exclusively or "single agency", or represent the seller exclusively, sub-agency, or represent both the buyer and seller in a dual-agency role. Some states mandate agents to disclose all possible agency relationships before they enter into a residential real estate transaction. The following is a summary of the three basic relationship types:

A) A buyer can hire his or her own agent who will represent the buyer's interests exclusively. Sometimes a buyer's agent must be paid out of the buyer's own pocket but the buyer can trust them with financial information, knowing it will not be transmitted to the other broker and ultimately to the seller. More often the seller pays both the selling broker and the buyer's broker.

B) Traditional relationships are where a real estate agent and broker have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table. It most cases you will have 2 broker's dividing the commission.

C) Dual agency exists if 2 agents working for the same broker represent the buyer and seller in the same transaction. A conflict of interest is created if the listing agent has advance knowledge of another buyer's offer. Therefore, the law claims that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without express written consent.

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