In this series we are going to take an in depth look at the role of real estate agents, what they can and can not do, and what their responsibilities are. We are also going to look at how the real estate agent works for the client.
What Is An Agent Or An Agency?
An agent is someone who acts on the behalf of another person. However it goes deeper than that when you are talking about a real estate agent and deserves a more in depth explanation. The High Court of Australia has stated that an agency is
“…a word used in law to connote an authority or capacity in one person to create legal relations between a person occupying the position of principal third parties.”
So in English what that means is that an agent is someone who is given authority by a person, who is known as the principal, to work with other people, or third parties, on their behalf. The principal is legally responsible for what the agent does, so it is very important to choose your agent with care. There are many ways in which a person can hire, or assign, an agent. Typically a written contract is drawn up and signed.
What Is An Estate Agent?
An estate agent is basically an introduction agent whose job is to “introduce” purchasers to vendor properties. The term “introduced” is used by commission estate agents and determines when the vendor is required to pay the commission. Once the parties have been “introduced” the estate agents job is done and both parties will then need to find lawyers to represent them for the final sale negotiations. A contract can only be negotiated by qualified lawyers and Lawyer Estate Agents.
What Is A Lawyer Estate Agent?
A Lawyer Estate Agent is a true agent for the seller of the property. This person is also referred to as the vendor. The Lawyer Real Estate Agent represents the vendor and has their best interests in mind. Since this relationship is regarded by the law as the same as that of a traditional lawyer, clients of Lawyer Estate Agents have the same benefits as clients of traditional lawyers.
Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 – 2008
Hi Sean,
Thanks for the lowdown on real estate agents and lawyer estate agents. I think you need to find real estate agents and lawyers to add to your real estate investment team.
That way, you’ll be sure to avoid any problems.
The only real estate agents I have dealt with so far were “normal” real estate agents, I didn’t know that there are lawyer estate agents as well.
It’s good to know that there are different “levels” and it is even more important to find a good agent for your team, as they can give or withhold a lot of information from you.