Real estate agents are licensed by the State and,
unless they hold a broker's license, must work under the guidance
of a licensed broker, or agency. In the past, for residential sales,
agencies almost always worked exclusively for sellers.
Sellers employed agents, and their agencies to market
their homes for sale and bring a ready, willing, and able buyer
to them. If this happened, and the property transaction was culminated
(closed), the agency and thus the agent received compensation (commission)
as agreed upon in the Exclusive Listing Contract. The Listing agent,
the Agency and all agents within that office worked for the seller.
When Multiple Listing Service (MLS) came into being
in the 70's, seller's agent's "offered" the listing and "shared
compensation" to agents in other offices if they brought the "ready,
willing and able" buyer. These "cooperating sub-agents" also
worked for the seller. Because they worked with buyers, but
not for, buyers. The situation was ideal for misunderstanding
and many buyers - up to 86% - thought the agent was working for
them! Unfortunately, many never understood they had no one working
for them until they had a problem after the purchase!
Sellers also did not understand the "extended" liability
they took on when the "for sale" offering in MLS meant
the sellers were essentially responsible for everything said and
done by the hundreds of "sub-agents" representing them
in the market place.
The 80's saw a change in all this as the buyer agent
evolved. This was a licensed agent who agreed to work for the
buyer! The problem would seem to be solved. But, because these
agents still worked for an agency who represented the sellers,
the agency and sometimes the agent found themselves offering representation
to the seller and the buyer at the same time! Although legal if
all parties agree to it, this "dual agency" situation
means reduced services to both the seller and the buyer.
Thus came the "Exclusive Buyer Agency" -
an agency that represents buyers only. The agency does not list
properties for sale. All agents work for buyers, all the time. |
