BUYER'S AGENT vs. TRANSACTION-BROKER vs. CUSTOMER
Recenlty I was approached by a potential client and they posed this questions to me "Why would I choose one of these over the other?" The first thing I did was to explain the differences in representation as they are all different. The following definitions are taken directly from the DEFINITIONS OF WORKING RELATIONSHIPS form as approved by the Colorado Real Estate Commission.
Buyer's Agent - A buyer's agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyaty and fidelity. The agent negotiates on behalf of and as an advocate for the buyer. The buyer's agent must disclose to potential sellers all adverse material facts actually known by the buyer's agent incuding the buyer's financial abililty to peform the terms of the transaction and if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.
Transaction-Broker - A transaction-broker assists the buyer or seller or both throughout a rel estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction-broker concerning a property or a buyer's financial ability to perform the terms of a transaction and if a residential property, whether the buyer intends to occupy the propery. No written agreement is required.
Customer - A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party's agent or as the party's transaction-broker.
After explaining these and assuring they understood the differences I then posed a question to them, "how would you want to be represented?". It is very obviouse that every person is going to have a different answer to this and it is important that you as a buyer feel comfortable with how you are being represented by your Realtor. Some agency's only allow their Agents to work as Transaction-brokers while others leave that decision up to the individual agent and their clients. So I suggest sitting down with your potential agent and asking them how are they willing to work with you and if you are not satisfied with their answer go find someone who will work with you as you see fit.