EBA Portland Frequently Asked Questions
Q: What is "Dual Agency"?
A: Buyers and sellers of real estate are deemed by
law to compete with one another and to have adverse interests. Accordingly,
a real estate broker who acts as an agent for both a buyer and a seller
in the same real estate transaction is a dual agent. A real estate
broker who acts for both the buyer and the seller and does not clearly
disclose his status to both parties and receive their informed consent
to the arrangement is an undisclosed dual agent.
SIMPLY STATED: Exclusive
Buyer Agency is the most ideal form of agency for a
buyer!
Q: What is "Disclosed Limited Agent"?
A: This is what Oregon Real Estate law proscribes -- Disclosed "Limited" Agency.
It stipulates that a "conflict of interest" must be disclosed. An agent under
a "Disclosed Limited Agency agreement has no duty to investigate matters."
SIMPLE STATED: Why would a Buyer (or a seller, for that matter) want to have
a "conflict of interest" even if it's disclosed?
Q: What is "Agency"?
A: An agency relationship is defined under the common law as follows:
- Agency is the fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on their behalf.
- The one for whom action is taken is the principal.
- The one who is to act is the agent.
Q: What is a "Fiduciary"?
A: Fiduciary duties are the highest duties known to the law. Classic examples of fiduciaries are trustees, executors, and guardians. As a fiduciary, a real estate broker will be held under the law to owe certain specific duties to their principal, in addition to any duties or obligations set forth in a listing agreement or other contract of employment (such as a buyer agency agreement).
SIMPLY STATED: An Exclusive Buyer's Agent has a "fiduciary duty" to their principal (the buyer) to act in their best interests.
Q: What is "Single Agency"?
A: As a practical matter, real estate brokers should avoid dual agency relationships. Creation of a lawful disclosed dual agency relationship is difficult. The obvious alternative to dual agency is single agency: A real estate broker should have one and only one principal per transaction; they should loyally and diligently pursue the legitimate interests of their principal; and they should scrupulously avoid accepting or exercising any authority on behalf of the other party to the transaction.
SIMPLY STATED: Exclusive Buyer Agency is the most ideal form of agency for a buyer!
Q: Does EBA Portland Co. work under contract?
A: Yes. To avoid any misunderstandings on the AGENCY RELATIONSHIP, EBA Portland Co. requires the buyer to sign a standard "Buyers Agency" contract.
Q: Does EBA Portland Co. CHARGE buyers directly?
A: No. While any Realtor® can charge a "retainer fee" or other agreed to form of compensation, EBA Portland waives buyer's fees when the Buyer's Agency contract is signed.
Fortunately, there is a way to receive buyer agency services, receive full access to the real estate marketplace and NEVER have to worry about the possibility of being drawn into a dual agency situation. And that is to retain the services of a specialized type of buyer's agent called the EXCLUSIVE buyer agent.
* Some excerpts from: The National Association of Realtors® booklet titled: Who Is My Client? - A Realtors® Guide to Compliance with the Law of Agency. © November 1986
