By Walt Harvey (R), ABR, CRS, GRI, SRES, ePRO
The role and responsibilities of a real estate agent in a real estate transaction is a topic of discussion and newly introduced legislation in the 2005 Legislative Session.
So what?
Hawaii is one of the few states that does not have statutory agency. As a result real estate agents, buyers and sellers make the rules up as they go and the courts sort it out when a dispute arises.
What is an “Agent”? Webster defines an agent as “a person acting on behalf of another”. Some say an agent is an “advocate” which “pleads in favor of another”. Some say an agent’s role is to make sure everyone is happy when the transaction closes. Therein lays the problem! The consumer doesn’t know what to expect from their “agent”.
In many states the agent’s role must be explained by the agent to a buyer or seller before “entering into a serious discussion.” The agent must explain the possible “agency relationships” to the buyer or seller before making an offer to purchase so the buyer or seller can make a reasoned choice.
Possible choices: Agent represents the Seller; Agent represents the Buyer; Agent represents both Buyer & Seller; Buyer is a “customer” and has no representation. Given the choices, will a buyer and seller choose to use the same agent to represent both parties? Does either party have an advocate? A new choice may be the “facilitator” or “transaction coordinator” or some other form of non-agency relationship.
Question to consumers: Do you want an “advocate”; someone who looks out for your interests or are you satisfied that everyone in the transaction is “happy” at closing?
Thankfully, the real estate market is consumer driven if the choices are explained, the consumer will decide the level of agency representation they want and what they’re willing to pay for it.
Walt Harvey is a real estate broker with East Oahu Realty and is Quality Service Certified®. Walt partners with his wife Arla and together they specialize in residential, commercial and investment real estate. You can reach them on their website: www.coastalhawaii.com. Real estate question? E-mail them: walt@coastalhawaii.com or call 375-8959.
Published in Small Business News, March 2005