While the seller is not limited to a price determined by a competitive market analysis or even a formal valuation, the broker will have little interest in selling a property with a much higher price. A price that is too high will be difficult or impossible to sell before the listing contract expires, and brokers, like most people, do not want to work for nothing. An ad agent for a property also representing the buyer is a dual agent. Alternate agents cannot have a fiduciary relationship with both parties and must treat both sellers and buyers in the same way. You cannot disclose confidential information or give confidential advice. A saleswoman sued a double agent in California for asking the buyer to ask the seller for a carpet premium. The dual agent cannot discuss the price of the house, the terms or negotiations on behalf of anyone. It is a challenge to get the highest and best price for the seller, if the broker also represents the buyer. An offer of options gives the broker the right, but not the obligation to purchase the property within a specified period of time over which the option expires. As this creates a conflict of interest, such as a net list, the broker must obtain the seller`s written consent for the option and disclose its profits to the seller.
List agreements are the most common in the “exclusive sale” category in which the agent/broker receives a commission, even if the seller finds the buyer (in an exclusive agency agreement, the agent/broker must procure the buyer to obtain a full commission). The listing agreement may have a multiple listing clause that allows the broker to list the property on the Multiple Listing Service (MLS), which is both an association of brokers and a real estate database provided by brokers participating in the Multiple Listing Service. Only real estate that a broker is allowed to sell exclusively or who is the exclusive agent can be listed in the MLS. All brokers have the right to sell any property on MLS, regardless of the agent who listed it. The broker is the broker who has signed an exclusive right to sell or an exclusive agency list, while the selling broker is the broker who finds a buyer for the property. Brokers who are part of the Multiple Listing Service agree to divide the commission between the listing broker and the sales broker. The term “agency” is used in real estate to determine the legal responsibilities that your real estate professional owes to you and other parties in the transaction.