What are the main duties of an agent in real estate transactions?
Real estate transactions involve significant financial decisions and complex processes. I want to walk you through the duties real estate agents must fulfill to serve their clients properly. These responsibilities form the foundation of the agent-client relationship and protect both parties throughout the transaction.
Duties of an Agent: The specific responsibilities and obligations that a real estate agent has when representing a client in property transactions. These duties typically include loyalty, confidentiality, full disclosure of material facts, obedience to lawful instructions, reasonable care and diligence, and proper handling of money or property.
Core Fiduciary Duties
Let's start with loyalty - the cornerstone of the agent-client relationship. Your agent must put your interests above all others, including their own. This means turning down opportunities that could create conflicts of interest and making recommendations based solely on what benefits you. For example, an agent shouldn't push you toward a property just because they'd earn a higher commission.
Confidentiality builds trust between you and your agent. They must keep private information private - from your maximum budget to personal circumstances affecting your move. This duty continues even after the transaction ends. The only exceptions involve legal requirements or preventing fraud.
Full disclosure requires agents to share all material facts about properties and transactions. Your agent should tell you about:
Known property defects
Recent price changes
Multiple offer situations
Relationships with other parties involved
Professional Responsibilities
Reasonable care and diligence mean doing the homework. Your agent should research comparable sales, verify property details, maintain organized files, and stay on top of deadlines. They need to know the market inside and out to serve you properly.
Following your lawful instructions falls under the duty of obedience. If you set a maximum price or minimum terms, your agent must respect those boundaries. However, they can't follow unlawful instructions, like discriminating against protected classes.
Money handling requires absolute precision. Earnest money deposits must go straight into properly maintained trust accounts. Every dollar needs proper documentation and handling according to state laws and regulations.
Additional Agent Obligations
Communication keeps transactions on track. Your agent should provide regular updates, respond promptly to questions, and document important conversations. Clear communication prevents misunderstandings and helps meet deadlines.
Marketing duties vary based on whether you're buying or selling. For sellers, agents should:
Create compelling property listings
Schedule and manage showings
Host open houses
Network with other agents
Transaction management involves coordinating all the moving pieces. Your agent tracks deadlines, handles paperwork, and works with other professionals like title companies, lenders, and inspectors.
Common Misconceptions
Agents can't make decisions for you - they advise and implement your choices. They're not lawyers or inspectors, so they can't give legal advice or guarantee property conditions. Dual agency situations, where one agent represents both buyer and seller, require extra care and disclosure.
Legal and Ethical Implications
Each state sets specific requirements for agent conduct. The National Association of REALTORS® Code of Ethics adds another layer of obligations. Breaking these duties can result in license suspension, fines, or lawsuits.
Working with Real Estate Agents
Set clear expectations with your agent from the start. Regular check-ins help maintain alignment throughout the process. Be honest about your needs and concerns - your agent can serve you better with complete information.
Making Your Move
Professional real estate agents make property transactions smoother and safer. At Bellhaven Real Estate, we take our duties seriously and put our clients first. Ready to buy or sell? Let's discuss how we can help you achieve your real estate goals.