Agency and duty to clients.

Not everyone seems to have a clear idea of why it is important to work with an agent, and why selecting the right agent is so important. Real estate is an increasingly complex business with high dollar investments at stake. Few people have the time to spend learning all there is to know about this field, but many are willing to invest a significant portion of their hard earned money to participate in real estate as a buyer or seller. Most Realtors are full time professionals who have the experience and knowledge that investors need.

First and foremost, you need to be clear about the difference between an agent and a Realtor, as many think the two are the same. An agent can be anyone of the thousands of people in California licensed to participate in real estate sale. All that has to happen for that is for them to pass an state sanctioned licensing exam. Realtors must be licensed agents, but in addition, also pledge themselves to a higher standard of ethical behavior in any transaction. Ethical behavior is enforced by members of their Board of Realtors.

Agency implies responsibility. Your agent acts in transactions as your fiduciary. Your agent puts your interests first in any transaction, and represents you. Here is Article 1 from the Code of Ethics and Standards of Practice of the National Association of Realtors.

"When representing a buyer, seller, landlord, tenant, or other client as agent, Realtors pledge themselves to protect and promote the interests of the client. This obligation to the client is primary, but it does not relieve Realtors of their obligation to treat all parties honestly. When serving as buyer, seller, landlord, tenant or other party in a non-agency capacity, Realtors remain obliged to treat all parties honestly."

The pledge is clearly written, and is to be taken seriously. Real estate transactions are extremely important. Make sure you deal with a Realtor when you choose your agent. If you are buying or selling, make sure you enlist an agent in whom you can place your trust, and who will maintain the highest ethical standards while representing your interests. Skip Murphy