A note from Matt about this episode: Agency relationships are really important, and the first time we discussed them (episode 14) we had no idea how to record a podcast. Episode 60 is another look at agency relationships in San Francisco real estate. - Matt
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Today on Escrow Out Loud, our San Francisco Real Estate podcast, we talk about one of the most important, and at the same time least understood, concepts in real estate – agency relationships.
[01:17] Let's start off by looking at real estate agency – what an agent does and what our fiduciary duties entail. Loyalty, confidentiality and the exercise of the utmost care are just a few of our duties to our clients, what are some others?
[02:15] Now that we know what an agent does, let’s talk about who they do it for. There are three types of agency relationships in California, but keep in mind that this does differ by state. Important disclaimer: we are not lawyers and don’t offer legal advice. Britton gives an overview of types of agencies in California: buyer agency, seller agency, and dual agency.
[03:49] People often think dual-agency means that both the buyer and the seller must be working with the same individual i.e., the same exact person with the same exact face! Britton and Matt myth-bust this assumption for us! They explain that the fiduciary relationship goes a level higher than that; the agency relationship is not with an individual agent, it is with the brokerage that holds the license for that agent.
A real-world example: if two different real estate agents from the same brokerage are involved, one representing the seller and the other the buyer, the relationship is dual-agency, and it is at the brokerage level. When a single individual is representing both sides of the transaction it is a specific type of dual-agency.
[06:22] While we are on the subject of agency relationships we explain the three steps in an agency relationship in California; disclosure, election and confirmation. How will the confirmation step change in the new revision of the purchase contract coming up in 2019? Also, what is an implied agency?
[11:34] Finally, how important is it to engage with an agent in the process of buying a house, or should you try and go about it yourself? We explain why it makes sense to put your team together first and what a dual agency can offer.
[15:23] Matt and Britton take us back to a time and share their own experiences in buying their first houses! Back then listings were sent through to them using something called a fax machine.
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