What you know about Idaho agency disclosure law can really bring clarity to who’s who in a real estate transaction. Let’s face it, people don’t buy and sell real estate every day. And understanding all of the terms and lingo can take time. So the state of Idaho has put together an easy to understand brochure that helps explain the relationships in a real estate transaction. It also identifies the benefits that come with those relationships. As a buyer or seller of a home in Rexburg ID, understanding these relationships can create peace. It will also allow you to go forward with your real estate goals with confidence.
Am I a Real Estate Customer or Client?
Understanding agency begins with understanding who you are and who the real estate professionals are that you will be working with. In a nutshell, you are either a customer or a client, and the real estate professional who is responsible for your transaction is a broker. Brokers have licensed real estate salespersons working for them, and most of the time you will work with a salesperson, but they only work on behalf of the broker.
Real Estate Customer
You are a customer if you have not signed a agency agreement with a broker or with one of the brokers real estate agents. There are benefits to being a customer. You will have a real estate professional to help you in the process of buying or selling property. You will have someone with real estate skills that you can trust. And you will have a broker that can handle money in a trust account. And most important, you will have someone that can identify and disclose significant factors that could effect the your transaction. Real estate agents and brokers do not usually work for free, so they will most likely ask you to sign a compensation agreement for their services if you remain a customer. Even though there are a lot of benefits to being a customer, you will find that there are some down sides. The Idaho Agency Disclosure Brochure states:
“If you are a Customer, a real estate licensee (sales agent) is not required to promote your best interest or keep your bargaining information confidential. If you use the services of the licensee and brokerage without a written Representation Agreement, you will remain a customer throughout the transaction.”
In other words, the agent and broker you are working with as a customer are only there to facilitate the transaction and make sure that the basics are in place. They are not there to promote your best interest. For that, you want to be a client.
Idaho Agency Disclosure Client
You can choose to change the relationship you have with real estate professionals by becoming a client. To become a client, you list your property on the multiple listing service through your agent, or you sign a buyer / seller representation agreement. Once this happens, the real estate professionals that represent you promote your best interests, maintain confidentiality of your information, and assist you in negotiating an acceptable price and terms for your transaction. The real benefits of using a real estate agent begin when you establish a client relationship.
Types of Agency
There are different types of agency depending on what real estate professionals you are working with as a client. These relationships will be covered in the next Real Estate Insights.
