Question

Fran with Millstream Realty brought an offer from her customer for another firm's listing. The listing agency clearly stated that no subagency was accepted for this transaction. What type of agency did Fran and her broker establish in this transaction?

Answer 1

Fran with Millstream Realty established a buyer's agency since subagency was not accepted. She represents the buyer's interests exclusively in the real estate transaction, owing them loyalty and confidentiality.

Step-by-step explanation:

In this scenario, because the listing agency declined subagency, Fran with Millstream Realty would have established a buyer's agency with her customer. This means Fran represents the interests of the buyer, not the seller. In a buyer's agency agreement, the buyer's agent owes a fiduciary duty to their client, which includes loyalty, confidentiality, and the obligation to work in the best interest of the buyer.

As no subagency is involved, Fran and her broker do not represent the seller nor do they collaborate with the listing agency, avoiding any conflicts of interest that may arise from representing both parties. Thus, Fran's role is to assist her customer in acquiring the property on terms that are most favorable to the buyer and negotiate on their behalf.

Answer 2

Fran established a buyer's agency relationship, representing the buyer's interests when the listing agency did not accept subagency. Her loyalty and fiduciary duties are to the buyer rather than the seller. This agency arrangement aligns with the lack of subagency acceptance by the listing agency.

Step-by-step explanation:

When Fran with Millstream Realty brought an offer from her customer for another firm's listing that did not accept subagency, Fran and her broker established a buyer's agency relationship with the customer. In this situation, Fran's loyalty is to the buyer rather than the seller. This type of agency relationship means Fran is working as a buyer's agent, advocating for the interests of the buyer rather than the seller, and the buyer is considered her client.

The listing agency's refusal to accept subagency essentially means they will not collaborate with other brokers who would act on behalf of the seller. Instead, any other brokers, like Fran, represent only the interests of the buyer. In buyer's agency, the buyer's agent typically has a fiduciary duty to the buyer, including loyalty, confidentiality, and the obligation to disclose all relevant information about the property.