Have you ever given only part of your attention to a project and gotten lackluster results? Might you have given it your full attention if you were assured of a reward upon successful completion? Well, that is kind of how real estate works. All agents WANT your business, but most agents won’t go out of their way for you unless they are assured of your loyalty.
In Tennessee, we practice something called Agency Law. It means that we have different responsibilities owed to different parties depending on the type of relationship we have with them. (Formal versus Informal, Client versus Public, etc., etc.)
Here is language from TN state statute 62-13-401:
“Until such time as a real estate licensee enters into a specific written agreement to establish an agency relationship… such licensee shall be considered a facilitator and shall not be considered an agent or advocate of any party to the transaction.”
Furthermore, “An agency relationship shall not be assumed, implied or created without a written bilateral agreement that establishes the terms and conditions of such agency relationship.”
By signing a representation agreement with the agent showing you homes, the agent legally owes you the following duties:
- Obey all lawful instructions of the client when such instructions are within the scope of the agency agreement between the licensee and the licensee’s client;
- Be loyal to the interests of the client. A licensee must place the interests of the client before all others in the negotiation of a transaction and in other activities, except where such loyalty duty would violate the licensee’s duties to a customer under
§ 62-13-402 or a licensee’s duties to another client in a dual agency; and - Unless the following duties are specifically and individually waived in writing by a client, a licensee shall assist the client by:
- Scheduling all property showings on behalf of the client;
- Receiving all offers and counter offers and forwarding them promptly to the client;
- Answering any questions that the client may have in negotiation of a successful purchase agreement within the scope of the licensee’s expertise; and
- Advising the client as to whatever forms, procedures, and steps are needed after execution of the purchase agreement for a successful transaction closing.
Signing a representation agreement protects you legally, sets expectations, and helps all parties get to success. Our policy at the Nesting In Nashville Team is to collect a signed representation agreement early in the relationship. However, we have a 100% Guarantee with an easy-exit clause. If at any point during the transaction, you feel that you aren’t getting the service that you deserve, simply cancel at any time.
Want to learn more? Let’s schedule a no-obligation consultation today. We can talk at the office or at a coffee shop. We could video chat or talk by phone. Let’s see if we are the right fit!
