There are three possible types of representation. Each one has unique elements that need to be considered.

Client Representation

A buyer client relationship is the highest form of obligation for a REALTOR® to a consumer. The brokerage and the sales representative have a legal obligation to represent your best interests as a client. This obligation is established through a Buyer Representation Agreement. However, it is important to understand that all material facts to a transaction must be disclosed to all parties (this includes the sellers) as the brokerage and sales representative must treat all parties to a transaction with fairness, honesty, and integrity.

Customer

A buyer does not have to be under contract as a client with a brokerage, but could choose to be a customer instead. A REALTOR® must treat every person in a real estate transaction with honesty, fairness, and integrity, but unlike a client, he or she will provide customer with a limited level of service. The agreement that is signed in this circumstance is called a Customer Service Agreement and it outlines the services that would be provided. The brokerage and sales representative are obligated to disclose any and all material facts known to them that relate to the transaction.

Multiple Representation

A buyer and seller are under contract with the same brokerage when showing a property or making an offer on a property. In this case, the relationship must be understood and it must be confirmed in writing that the buyers and sellers acknowledge this situation before an offer is made. The agreement that is signed is called a Confirmation of Cooperation and Representation Form.

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