Purchasing Real Estate - Selling Real Estate
Learn about the Kentucky Consumer Guide To Agency Relationships and what obligations Crane Realtors® owes Buyer Clients and Seller Clients.
Below is a guide to Kentucky's real estate agency relationships. Please review the agency guide. This is not a binding contract but is for informational purposes so potential clients understand the different agency types. Your Crane Realtors® agent will present this to you and request a signature acknowledging receipt. Again, this does not bind you to any commitment but ensures you understand agency relationships.
CONSUMER GUIDE TO AGENCY RELATIONSHIPS
CRANE REALTORS, LLC
We are pleased you have selected Crane Realtors®, LLC to help you with your real estate needs. Whether you are selling, buying or leasing real estate, Crane Realtors®, LLC can provide you with expertise and assistance. Because this may be the largest financial transaction you will enter into, it is important to understand the role of the agents and brokers with whom you are working. Below is some information that explains the various services agents can offer and their options for working with you.
For more information on agency law in Kentucky, you may also contact the Kentucky Real Estate Commission at (502) 429-7250, or on its website at www.krec.ky.gov.
Representing Property Owners (Sellers and Landlords): When property owners choose to list their property for sale or lease with a real estate brokerage, they sign a listing agreement that authorizes the brokerage and the listing agent to represent their interests. When this occurs, the brokerage and listing agent must: follow the property owner’s lawful instructions, be loyal to the property owner, promote the property owner’s best interests, disclose material facts to the property owner, maintain confidential information, act with reasonable skill and care, and account for any money they handle in the transaction. In some circumstances a listing broker may also offer “subagency” to other brokerages which would also represent the property owner’s interests and owe the property owner these same duties.
Representing Buyers and Tenants: When seeking to purchase real estate, buyers usually choose to work with a real estate agent. Tenants seeking to lease real estate also choose to work with a real estate agent. When buyers are represented by agents, the representation is referred to as buyer’s agency. A brokerage and agent that agree to represent a buyer’s or a tenant’s interest in a transaction must: follow the buyer’s or tenant’s lawful instructions, be loyal to the buyer or tenant, promote the buyer’s or tenant’s best interests, disclose material facts to the buyer or tenant, maintain confidential information and, account for any money they handle in the transaction.
Dual Agency: In some transactions, the same agent and brokerage that represent the property owner also represent the person who seeks to buy or lease his or her property. This is referred to as dual agency. When a brokerage and its agents become “dual agents,” they must remain loyal to both clients. They may not advocate the position of one client over the best interests of the other client or disclose any personal or confidential information to the other party without written consent.
Working With Crane Realtors®, LLC: In dual agency transactions, Crane Realtors®, LLC represents buyers/tenants and property owners (sellers/landlords). When Crane Realtors®, LLC lists property for sale or lease, all agents in the brokerage represent the property owner. Likewise, when a buyer or tenant is represented by a Crane Realtors®, LLC agent, all of the agents represent that buyer or tenant. Therefore, when a buyer or tenant represented by a Crane Realtors®, LLC agent wishes to purchase or lease property listed by our company, the agent(s) involved act as dual agents. This is true whether one agent is representing both parties or two separate agents are involved.
In the event that both the buyer or tenant and the property owner are represented by Crane Realtors®, LLC agents, these agents and Crane Realtors®, LLC will act as dual agents, but only if both parties agree. As dual agents, they will treat both parties honestly, prepare and present offers at the direction of the parties, and help the parties fulfill the terms of any contract. They will not, however, disclose any confidential information that will place one party at an advantage over the other or advocate or negotiate to the detriment of either party.
If dual agency occurs, you will be asked to consent to that in writing. If you do not agree to your agent acting as a dual agent, you can seek representation from another brokerage.
As a buyer or tenant, you may also choose to represent yourself on properties Crane Realtors®, LLC has listed. In that instance, Crane Realtors®, LLC will represent the property owner and you would represent your own best interests. Because the listing agent has a duty of full disclosure to the property owner, you should not share any information with the listing agent that you would not want the property owner to know.
Working With Other Brokerages: When Crane Realtors®, LLC lists property for sale or lease, it also cooperates with, and offers compensation to, other brokerages that represent buyers or tenants. As a property owner, you should understand that just because Crane Realtors®, LLC shares a fee with a brokerage representing the buyer or tenant, it does not mean that you will be represented by that buyer’s or tenant’s brokerage. Instead, that company will be representing the buyer or tenant and Crane Realtors®, LLC will be representing your interests. When acting as a buyer’s agent or an agent representing a tenant, Crane Realtors®, LLC also accepts compensation offered by the listing broker. If the property is not listed with any broker, or the listing broker does not offer compensation, we will attempt to negotiate for a property owner-paid fee.
Fair Housing Statement
It is illegal, pursuant to the Kentucky Fair Housing Law and Federal Fair Housing Law, to refuse to sell, transfer, assign, rent, lease, sublease or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status, disability, national origin, sexual orientation (in some counties), or gender identity (in some counties) or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the providing of real estate brokerage services. It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes.
We hope you find this information to be helpful to you as you begin your real estate transaction. When you are ready to enter into a transaction, you will be given an Agency Disclosure Statement that specifically identifies the role of the agents and brokerages. Please ask questions if there is anything you do not understand
Because it is important that you have this information, Kentucky law requires that we ask you to sign below, acknowledging receipt of this pamphlet. Doing so will not obligate you to work with our company if you do not choose to do so.
Additional Information Regarding Dual Agency
DUAL AGENCY: Kentucky law permits a real estate agent and brokerage to represent both the Seller and Buyer in a real estate transaction as long as this is disclosed to both parties and they both agree. This is known as dual agency. As a dual agent, a real estate agent and brokerage represent two clients whose interests are, or at times could be, different or adverse. For this reason, the dual agent(s) may not be able to advocate on behalf of the client to the same extent the agent may have if the agent represented only one client.
As a dual agent, the agent(s) and brokerage shall:
- Treat both clients honestly;
- Disclose latent (not readily observable) material defects to the purchaser, if known by the agent(s) or brokerage;
- Provide information regarding lenders, inspectors and other professionals, if requested1;
- Provide market information available from a property listing service or public records, if requested;
- Prepare and present all offers and counteroffers at the direction of the parties;
- Assist both parties in completing the steps necessary to fulfill the terms of any contract, if requested.
As a dual agent, the agent(s) and brokerage shall not:
- Disclose information that is confidential, or that would have an adverse effect on one party’s position in the transaction, unless such disclosure is authorized by the client or required by law;
- Advocate or negotiate on behalf of either the Buyer or Seller;
- Suggest or recommend specific terms, including price, or disclose the terms or price a Buyer is willing to offer or that a Seller is willing to accept;
- Engage in conduct that is contrary to the instructions of either party or act in a biased manner on behalf of one party.
Responsibilities of the Parties: The duties of the agent and brokerage in a real estate transaction do not relieve the Buyer and Seller from the responsibility to protect their own interests. The Buyer and Seller are advised to carefully read all agreements to assure that they adequately express their understanding of the transaction. The agent and brokerage are qualified to advise on real estate matters. IF LEGAL OR TAX ADVICE IS DESIRED, YOU SHOULD CONSULT THE APPROPRIATE PROFESSIONAL.
The team at Crane Realtors® is ready to help you with your home purchase! For exceptional and professional servicebe sure to call the team atCrane Realtors®.