WORLD
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REALTY COMPANY 

Buyer's Broker
Seller's Broker
Transaction Broker


In Alabama there are 3 basic relationships an Alabama Licensed Real Estate Broker can have with a prospect. The Alabama Real Estate Commission requires that for an agency relationship to exist, there shall be an agency agreement signed between the real estate broker and their client. If no written agency agreement exists then no agency exists, but rather the broker shall be a transaction broker thus having no fiduciary responsibility or representation responsibilities toward that party.

World Properties Realty Company offers Buyer's Broker and Selling Brokerage services.


Types of Representation:

TRANSACTION BROKERAGE

   Transaction brokerage describes a brokerage arrangement whereby the real estate licensee assists one or more parties in a contemplated real estate transaction, without being the agent, fiduciary, or advocate of any party to the transaction.  This means that real estate brokers and salespeople are acting as intermediaries between buyers and sellers.  With this type of brokerage arrangement, home buyers and sellers are customers and not clients of the licensees with whom they are working.  The basic function of the licensee is to bring buyers and sellers together so that a real estate sale can be completed.  Sellers will employ the licensee to help market their real estate by identifying qualified buyers and showing their properties to prospective purchasers.  This will usually also involve advertising properties for sale in newspapers and other media.  Sellers will commonly also rely on the expertise, experience, and advice of the real estate licensee to help make their property ready for sale and determine an appropriate asking price.  Buyers, in turn, rely on the services of brokers to find and show them suitable real estate that they can afford and have the desired characteristics.  Real Estate professionals may also help consumers obtain mortgage financing as well as assist them with finalizing the real estate sale and recording the deed and other documents associated with the sale.
   Transaction brokerage arrangements are usually best suited for consumers who are primarily interested in the marketing services and expertise that can be provided by real estate professionals, but who do not need an agent to represent them in the negotiations for the sale or purchase of real estate.  With a transaction brokerage agreement, the licensee must provide brokerage services to all parties honestly and in good faith and avoid showing favoritism to either buyer or seller.  Alabama law also requires all licensees exercise reasonable care and skill when providing brokerage services, answer all questions completely and accurately, and present all written purchase offers to sellers promptly and in a truthful manner.
   Licensees must also keep confidential any information given to them in confidence, unless disclosure of this information is required by law.  For sellers, this means that licensees must answer a buyer's questions about the condition of the property completely and honestly.  In addition, the buyer must be told about any hidden defects known to the licensee that could affect the health or safety of occupants.
 

SINGLE AGENCY

   A single agency arrangement describes a relationship whereby the real estate licensee represents only one party in a real estate sales transaction.  In the case of a single agency brokerage arrangement, the real estate licensee represents either the buyer or the seller, but not both parties to the real estate transaction.  This type of brokerage arrangement is the most appropriate for consumers who need the advice and negotiating skills of real estate professionals in addition to their marketing services.  If a seller enters into a single agency agreement with a real estate broker, the broker is referred to as a Seller's agent (a.k.a. the Listing Agency).  Under this arrangement the broker must represent only the seller in the negotiations with buyers.  Here the broker will seek the highest possible price and best possible sale terms for the seller.  This type of brokerage arrangement can involve the use of subagents, especially in situation where properties are marketed through a multiple listing service.
   The Listing Agency sometimes allows other agencies to act as Subagents which are thus empowered to act for the Listing Agnecy in performing real estate services.  The subagent woes the same duties to the broker's client as the broker.  If a broker is an agent of the seller, then the subagent is also the seller's agent.  When examining properties advertised through a multiple listing service it is important for buyers to determine whether the licensee that is showing them properties is acting in the capacity of a transaction broker, seller's agent, or as a subagent of the seller.
   Buyers should exercise care with respect to the information they reveal to licensees working as seller agents.  For example, if you are the customer it would not be wise to tell a licensee the maximum price you would be willing to pay for a particular property when considering making a formal purchase offer.  If you are the customer, the broker's primary responsibility is to the seller. In this case, the licensee, as the seller's agent, must convey such information to the seller.
   A Buyer's agent describes a real estate licensee who is employed by and represents only the buyer in a real estate transaction.  This relationship is created by a written contract.  This contract should clearly state the service the agent will perform for the buyer as well as specify how the licensee is paid for services rendered in connection with the real estate sale.  In this case, the buyer is the client or principal and the real estate broker is the agent of and represent the buyer in dealing with sellers.
   This type of real estate brokerage agreement should be used when the buyer needs guidance and representation when negotiating with sellers to purchase real estate.  Buyers moving to a new location and are unfamiliar with local market conditions would be those consumers most likely to benefit from this type of agency arrangement.  It is becoming increasingly common in multiple listing situations for the selling broker (a licensee working with and showing properties to the buyer) to be the agent of the buyer and the listing broker to represent the owner seller.  Here, both the buyer and seller, working through their respective agents, could negotiate at arm's length with the benefit of professional help.


If you would like to obtain more information about any of these or find out specifically how we may help you in the best way possible, please feel free to give us a call at 879-9287 or email us .


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2820 Columbiana Road                                 Birmingham, Alabama                                                      35216 
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