When navigating the real estate market, understanding the distinctions between agency and non-agency relationships with real estate professionals is crucial. These relationships, defined by state laws, determine the duties and responsibilities your agent owes you during a transaction.

Agency Relationships

In an agency relationship, a licensed real estate professional represents you, whether you’re buying or selling a property. This agent has fiduciary duties, meaning they’re legally obligated to act in your best interests. For sellers, this typically involves securing the best price and terms, formalized through a listing agreement. Buyers engage agents to advocate for their interests throughout the purchasing process.

Non-Agency Relationships

Alternatively, non-agency relationships involve real estate professionals providing assistance without formal representation. In this scenario, the professional doesn’t have fiduciary duties to either party. A common example is a “transaction broker” or facilitator, who remains neutral while helping both buyer and seller reach an agreement. The availability and specifics of non-agency relationships vary by state law.

Choosing the Right Relationship

It’s essential to assess your needs and understand the implications of each type of relationship. While agency relationships offer dedicated representation, non-agency roles provide neutral assistance. Consult with real estate professionals to determine which arrangement aligns best with your goals.

For a comprehensive understanding, refer to the National Association of REALTORS®’ Consumer Guide on Agency and Non-Agency Relationships.

Remember, the nature of your relationship with a real estate professional can significantly impact your transaction experience. Ensure you make an informed decision that best serves your interests.