In the real estate industry, understanding the roles and responsibilities an agent can take on is crucial for both buyers and sellers. Whether you're entering the market to purchase your dream home or aiming to sell your property at the best price, knowing the differences between buyer's agency, seller's agency, disclosed dual agency, and transaction broker can empower you to make informed decisions.

• Buyer's Agency:

• Representation: In a buyer's agency relationship, the real estate agent exclusively represents the buyer's interests throughout the transaction.

• Duties: The buyer's agent works to find suitable properties, negotiate offers, guide the buyer through the purchasing process, and various other roles.

• Loyalty: The agent owes undivided loyalty to the buyer, prioritizing their best interests above all else.

• Seller's Agency:

• Representation: In contrast, a seller's agent exclusively represents the seller's interests.

• Duties: The seller's agent lists the property, markets it to potential buyers, and negotiates offers on behalf of the seller.

• Loyalty: The agent is loyal to the seller, striving to secure the best possible terms and price for the property.

• Disclosed Dual Agency:

• Representation: Disclosed dual agency occurs when a single real estate brokerage represents both the buyer and the seller in the same transaction.

• Disclosure: Before entering into a dual agency relationship, all parties must provide informed consent, acknowledging the potential for conflicts of interest.

• Neutrality: In this scenario, the agent must maintain neutrality, refraining from prioritizing the interests of either party over the other.

• Limited advocacy: While the agent facilitates the transaction, they cannot advocate fiercely for either the buyer or the seller due to the inherent conflict of interest. As you can imagine, some seller’s and buyer’s refuse to allow their agents to be disclosed as dual agents.

• Transaction Broker:

• Facilitation: A transaction broker assists both the buyer and the seller in completing the real estate transaction but does not advocate for either party.

• Neutrality: The transaction broker remains neutral, providing administrative support and facilitating communication between the parties.

• Limited representation: Unlike traditional agency relationships, a transaction broker does not owe fiduciary duties of loyalty, confidentiality, and obedience to either the buyer or the seller.

In New Jersey, understanding the nuances of buyer's agency, seller's agency, disclosed dual agency, and transaction broker arrangements is essential for navigating the real estate market with confidence. Whether you're buying, selling, or facilitating a transaction, knowing your rights and responsibilities can lead to a smoother, more successful experience for all parties involved.