Metcalf Land Company, Inc.

Types of Agency Representation

Several years ago South Carolina, along with most other states, passed laws that specifically direct real estate brokers to represent either the buyer or the seller in a transaction.

• SELLER AGENCY - In a typical sale we represent the seller and are compensated by the seller. Buyers are treated fairly and are given accurate, dependable information that they can rely on to make an informed decision. We prepare the buyer's offer and include the specific language that the buyer directs. We then submit the contract to the seller and relay the acceptance or any counteroffers. The ideal situation is achieved with the buyer paying a fair price and the seller receiving a fair price
• BUYER AGENCY or BUYER-BROKER - In a buyer-broker arrangement, the buyer employs the broker to represent only the buyer's interest. In turn the buyer, instead of the seller, pays the broker's commission. This is an excellent way for a novice buyer to tap the skill and expertise of a professional land buyer. This knowledge can often mean the difference between success and failure when attempting to acquire high demand properties from difficult sellers
• DISCLOSED DUAL AGENCY - Dual agency exists when the real estate Company has two clients in one transaction - a seller client and buyer client. In disclosed dual agency, the Company's representation duties are limited because a buyer and seller have recognized conflicts of interest.  Both clients' interests are represented by the Company.  As a disclosed dual agent, the Company and its associated licensees cannot advocate on behalf of one client over the other, and cannot disclose confidential client information concerning the price negotiations, terms, or factors motivating the buyer client to buy or the seller client to sell.
• DESIGNATED AGENCY - In designated agency, a broker-in-charge may designate individual associated licensees to act solely on behalf of each client.  Designated agents are not limited by the Company's agency relationship with the other client, but instead have a duty to promote the best interest of their clients, including negotiating  a price.  The broker-in-charge remains a disclosed dual agent for both clients, and ensures the assigned agents fulfill their duties to their respective clients. 
  
  
  The popularity of buyer-brokerage has created some problems, particularly in residential sales. We have seen several cases where a residential agent listed a seller's house and simultaneously persuaded the seller to sign a buyer-broker agreement. Although initially the agent was employed to assist the seller in finding another house through the Multiple Listing Service, the circumstances changed and the seller decided instead to buy land and build. The buyer-broker agreement still obligated the seller to pay a commission to the agent.
  
  There are several ways to protect yourself from being inadvertently caught in this type predicament:

1. At the very least, limit these agreements to specific types of properties. If the agent is going to help you find a house, limit the contract to your purchase of a house
2. Further limit the contract to properties entered into the Multiple Listing Service. You may find a builder house or discover a "for sale by owner" house on your own
3. Try to negotiate a contract that obligates you to pay a fee only in the event you purchase a specific property the agent submitted to you
4. Limit the term to a reasonable time of say 60 days
   

The Metcalf Land Company, Inc. strives to participate in buyer-broker agreements only for larger tracts or commercial sites. We do not obligate a buyer to pay the fee if a different type property is purchased or a property is purchased from another source.