Do real-estate agents represent the buyer, seller or both?

Courtesy Chicago Sun-Times
BY LARRY FINLEY
SUN-TIMES REPORTER

A real estate agent represents either the buyer or the seller in a home purchase. That was not always the case.

Until January 1995, real estate agents were legal agents of the property's seller. Even though agents helped buyers find a home, they still were acting for the seller.

Now, by law, it is presumed that if you go to an agent and ask his help in finding a property, he works for the buyer. This is called a buyer's agent.
The Chicago Bar Association recommends determining if the agent represents you, the seller, or both the buyer and the seller.

The buyer's agent should help find listings of properties that suit the buyer's needs. He or she should provide information about financing, and help in the purchase and closing.

The buyer's agent also should help determine the fair value of a property, and negotiate for the best price and terms. The buyer and the broker enter into a contract defining the legal relationship and duties of both parties.
Even though the broker represents the buyer, the broker is paid by the seller--just as before.

The seller's (listing) agent represents the home seller in a transaction. Agents representing a seller might work in the same agency as your broker.
A dual agent represents both the buyer and the seller. Such an arrangement requires the permission of the buyer.

A first-time home buyer, or someone not familiar with negotiating a purchase, probably would be better served by a buyer's agent.

Some "buyer brokers" have offices that only represent buyers and not sellers. They, too, are paid by the seller.

A Realtor is a licensed real estate professional who is a member of the National Association of Realtors, and is regulated by a code of ethics and standards of practice.

All agents are licensed by the state of Illinois.
More information can be found at the Illinois Association of Realtors Website www.illinoisrealtor.org.

The Chicago Bar Association also has information on the rights and duties of both the real estate buyer and the seller at www.chicagobar.org.