Benefits of Buyers Agency
What is Buyers Agency?
As defined by the State of Colorado:
Buyers Agent: A buyers agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyers agent must disclose to potential sellers all adverse material facts actually known by the buyers agent including the buyers financial ability to perform the terms of the transaction and if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
What does this mean for me?
In otherwords, upon formalizing the relationship, a Colorado real estate broker, can represent and be an advocate for your interests.
How is a Buyers Agent compensated?
Buyer Agents in Colorado are traditionally compensated by the seller at closing. As such, the services rendered by the Buyers Agent are free to the home buyer.
Other types of working relationships are as follows:
Sellers Agent: A sellers agent (or listing agent) works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The sellers agent must disclose to potential buyers all adverse material facts actually known by the seller’s agent about the property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.
Transaction-Broker: A transaction-broker assists the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyers financial ability to perform the terms of a transaction and if a residential property, whether the buyer intends to occupy the property. No written agreement is required.
Customer: A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the partys agent or as the partys transaction-broker.