Bozeman Real Estate Seller Agency (In light of the Burnett et al v, NAR et al lawsuit, the information below may have significantly changed.)
Bozeman Real Estate “Seller Agency” in a realty transaction establishes a “principal-agent” Relationship2 in which an “agent,” a real estate agent and/or a REALTOR©, represents a “principal,” a Seller(s). The “agent” then has a fiduciary responsibility to the “principal” as indicated through an Agreement1.
- An Agency Agreement1 in a Bozeman real estate transaction is a property listing document signed both by a client and real estate agent/REALTOR©, establishing the agent as the client’s representative in a transaction.
- An Agency Relationship2 in a Bozeman real estate transaction indicates a relationship has been established through an oral, a written, or an implied agreement.
Types of AGENCY AGREEMENTS1 and AGENCY RELATIONSHIPS2 that, together, occur in real estate transactions:
EXCLUSIVE AGENCY AGREEMENT1
This Bozeman real estate Agreement indicates a unilateral (one-sided) agreement has been established, affecting only one party in the transaction, the Agent, who is only paid if she/he finds a buyer for the Seller’s property; thus the term “unilateral agreement.” (If the Seller sells the property, the Agent is not paid.)
- NOTE: This type of real estate listing Agreement1 is considered a type of Agency Relationship2, an “EXPRESS Agency Relationship,” which, by default, also turns it into a bilateral (two-sided) pact that can be enforced when or if the Agent does find a buyer for the property, at which time BOTH the Agent and the Seller must fulfill their agreed-upon duties.
- Now, this “Express Agency Relationship” denotes that this is a transaction in which the established Agency Relationship2 has been created between the Agent and Seller through either an oral agreement or a written document, which indicates their express intent to create this mutual representational status.
EXCLUSIVE RIGHT TO SELL AGREEMENT1
This Bozeman real estate Agreement requires that the Agent is paid regardless of who sells the property, the Agent or the Seller. Basically, the Agent must do his/her duty to sell the property and the Seller must compensate the Agent through a commission.
- NOTE: This two-sided or bilateral pact also becomes a type of Agency Relationship2, an “Express Agency Relationship,” again, meaning promises, preferably fixed through a written contract, were established and agreed upon by all parties. (Always put everything in writing!)
IMPLIED AGENCY RELATIONSHIP2
“Implied Agency” in a Bozeman real estate transaction or any Montana real estate transaction, for that matter, is an Agency Relationship2 created by the actions of the parties in a real estate transaction. If a real estate agent or a REALTOR© (hereafter “agent”) takes on responsibilities that are normally those of an agent, but has not signed an agency agreement, the agent may still be considered an “agent” by way of an “implied agency.” Similarly, if a client requests the agent for advice or actions that are normally considered part of the duties of agency, then an implied agency could very well be created.
EXPRESS AGENCY RELATIONSHIP2
“Express Agency” is a Bozeman real estate transaction in which an Agency Relationship2 is created by either an oral or a written agreement between the Agent and Seller, indicating their express intent for this representational status in their real estate relationship.
Other types of real estate Agreements and Relationships exist; these above are the most common.
Remember: ALWAYS have EVERYTHING regarding your Montana real estate transaction recorded in writing! If in doubt, contact a Bozeman real estate attorney.
Montana Real Estate Agent Duties:
- Promote the interest of the Seller with utmost loyalty, good faith, and fidelity.
- Exercise reasonable skill and care for the Seller.
- Perform the terms of the written agreement.
- Disclose material facts to Seller that are actually known to Broker.
- Counsel Seller as to material benefits or risks.
- Account in a timely manner for all monies and properties received.
- Comply with applicable local, state and federal laws.
- Seek price and terms acceptable to Seller.
- Present all offers to Seller in a timely manner.
- Disclose the following only with informed consent of the Seller.
- That the Seller is willing to accept less than the asking price.
- Advise Seller to seek legal and other types of expert advice.
- Facts or suspicions which may psychologically impact the sale.
- Understand the motivations are of the Seller.
- Understand the financing terms the Seller would accept beyond those offered.
- Any material information about Seller unless required by law.
Termination of Real Estate Seller Agency
Termination will be the earlier of the following:
- Completion of the Bozeman property purchase.
- The date of expiration agreed to by the parties.
- Mutual Termination by the Parties.
Real Estate Contract Termination for Performance
Real Estate Agent Responsible for:
- Accountability for monies and properties.
- Confidentiality of information received during agreement unless:
- Required by law.
- Released in writing by engaging party.
- Information is made public by source other than Broker.
Compensation:
- Compensation may be paid by Buyer/Tenant or Seller/Landlord or third party.
- Compensation may be paid by more than one party with the written consent of parties.
- Payment of compensation shall not be construed to establish agency.
- The identity of source of compensation shall be disclosed to all parties.
