When you choose to work with me, our first step will be to define the scope and nature of our partnership. This is outlined by the Rhode Island Mandatory Relationship Disclosure and it truly lays the groundwork for a transparent and effective relationship– crucial for navigating your most substantial financial commitment. I wholeheartedly believe that it’s vital to enter this journey with a comprehensive understanding of each phase of the home buying or selling journey in order to make informed, beneficial decisions. This starts with the Mandatory Real Estate Relationship Disclosure, a document that clarifies the various Agency roles I can adopt to advocate on your behalf.
Whether you’re a first-time buyer or seasoned in the market, the type of representation you choose can significantly impact your experience. I want to explain the roles available in Rhode Island real estate transactions, focusing on why a Designated Client Representative is your best ally in navigating the complex process of buying a home. This is especially critical now that you are required to sign a Buyer Broker Agreement aka BBA (or Buyer Representation Agreement) when any real estate agent shows you a property. That document outlines the compensation requirements should you decide to submit an offer on that property–the Mandatory Relationship Disclosure is also a required document that goes hand in hand with the BBA. First let’s cover the agency relationship.
The Roles Explained
- Transaction Facilitator: This agent facilitates the transaction without taking sides, offering guidance to both buyer and seller but does not represent either. A Transaction Facilitator does not owe confidentiality or any fiduciary duties to the customer. A Transaction Facilitator cannot negotiate on your behalf. I’ve served in this role a few times in situations where an agreement was already made between a Buyer and Seller (one example was when a client was purchasing his Grandmother’s house–they already had the details worked out and they wanted me to help with the legal documents and resources).
- Designated Client Representative: As your Designated Client Representative, I wear your team colors, so to speak. My role is to champion your cause, offering personalized guidance, insight, and advice, negotiating fiercely on your behalf, and holding your confidences dear. I’m here to navigate the complex waters of buying a home, ensuring your interests are protected. This is the role I serve in 98% of the clients that I serve.
- Neutral Dual Facilitator: Straddling the line between buyer and seller, this agent assists a Buyer and Seller in the same transaction and, as the name implies, must remain neutral. This is the relationship that would occur if a Buyer chooses to not be represented by their own real estate agent. The seller’s agent cannot serve as a Designated Client Representative for both the Buyer and the Seller. Instead, the seller’s agent becomes a Neutral Dual Facilitator serving both the Buyer and the Seller in a limited capacity. The agent must protect the confidential information of both parties. Both parties must sign a written agreement consenting to this relationship as well as the principal Broker. This relationship does not serve the buyer’s best interests as they will not have access to specialized advice and an agent negotiating on their behalf. I have served in this role, in ten years of real estate, one time. I believe that the vast majority of the time it is not in my clients best interest–whether I’m representing a Buyer or a Seller.
- Transaction Coordinator: Focused on the administrative side, this role ensures the transaction proceeds smoothly, without offering advice or advocacy to either party. My team has a Transaction Coordinator who will assist us with the process timeline, maintain all records for seven years, and ensure all legal documents have been fully executed.
Why Choose a Designated Client Representative?
In my years of experience, I’ve found that buyers benefit immensely from having a dedicated advocate in their corner. Real estate transactions are complex and there are many unforeseen challenges. Having someone who is not only well-versed in the intricacies of the market but also fully committed to your interests can make all the difference. From uncovering hidden gems to negotiating the best possible terms, a Designated Client Representative is your guide, protector, and advocate.
Why Do You Have To Also Sign A Buyer Broker Agreement/Buyer Representation Agreement?
How real estate agents are paid has changed. The old way was that the Seller’s Agent would establish a Broker fee for Listing the property as well as establish the compensation that would be paid to the Buyer’s Agent. In a class action lawsuit, Attorney’s argued on behalf of sellers that establishing that compensation for the Buyer’s Agent was essentially “price fixing” and was not in the sellers best interest. A settlement to the lawsuit was agreed upon by the National Association of Realtors (NAR). The compensation to Buyer’s Agents may still be offered by sellers but it will no longer be disclosed and displayed on Multiple Listing Sit (MLS–this is the syndicate site that populates all the real estate listings you see on zillow, redfin, etc). What does this mean for you—-you need to establish an Agency relationship which is contractural and establishes the duties that agent will perform on your behalf, their legal and fiduciary responsibilities (if any), the length of time and scope, as well as the compensation that will be due in the event that they help you to secure a property. ALL real estate agents must require Buyer’s–even those who are “just looking” to sign the relationship disclosure and the BBA before showing even one single property. If an agent doesn’t require this agreement, consider it a warning sign and seek out a professional who adheres to these important industry standards. And if you ask an agent to forego this process you are showing that you do not respect their professional obligations–to me that would be a red flag and someone I would not be willing to work with.
Your Trusted Guide
As your real estate agent, my mission goes beyond transactions. I’m here to build relationships based on trust, respect, and mutual success. Choosing the right type of agent relationship is a crucial step in this journey. I’m committed to ensuring you’re fully informed and comfortable with every decision along the way.
(Click on the link below to review a sample document. For educational purposes only and not to be copied or used)