There are two types of people realtors deal with – customers and clients, where the latter is represented and whose interests have to be protected by the realtor.
Of course, representation is simple when both the buyer and seller have realtors from different agencies but it gets complex in other situations.
With that said, here are four types of common real estate representation:
#1: Seller Agency
A realtor from Brokerage X represents the seller in a real estate transaction and is contractually bound to protect the financial interests of the seller.
#2: Buyer Agency
A realtor from Brokerage Y represents the buyer in a real estate transaction and is contractually obligated to protect the buyer’s financial interests similar to the seller’s realtor.
#3: Dual Agency
In this case, a realtor from Brokerage X represents both buyer and seller equally and is not allowed to provide complete information to either client due to the confidentiality that they owe both. They are responsible for the entire real estate transaction occurring.
#4: Designated Agency
In this case, two brokers represent both the buyer and seller separately. However, the brokerage protects both their financial interests equally. Since it also owes both parties confidentiality, it is contractually obligated to do nothing to the detriment of both parties as well.