Hiring a Realtor in Bismarck North Dakota? Read this first!
North Dakota law requires that, early in a relationship (at first substantive contact), real estate Brokers and their salesperson discuss with consumers what type of agency representation or relationship they desire with a real estate professional.
The agency options are listed on a two page form. It is NOT a contract. Signing the document does not obligate you to work with the realtor that provided it to you. The goal is to inform you of the parameters of each type of relationship so you can make a good choice BEFORE you sign a actual contract.
According to state law., you must have a written contract to obtain the benefits or representation. That is why real estate professionals keep asking you to sign a contract. Until you sign one of these, you will be treated as a Customer by all realtors. The contract is called a Listing Agreement if you are a Seller. If you are a buyer it is called a Buyer Representation Agreement.
There are definite benefits to having a contract with a realtor. Most importantly the real estate professional will be obligated to the following fiduciary duties: loyalty, obedience, disclosure, confidentiality, reasonable care and accounting.
Obedience: Agents must obey instructions, barring illegal, unethical requests, or requests which contradict terms of the contract.
Loyalty: Agents must be loyal and keep the best interests of the client ahead of those of any other party, including the agent.
Disclosure: Agents must disclose material facts to their client. Material facts are those which, if known by the buyer or seller, might affect purchase or sale actions.
Confidentiality: A fiduciary duty of confidentiality means that an agent does not disclose anything that they learn about you, your business, financial or personal affairs or motivations.
Accounting: Accounting for all documents and funds in the transaction is a fiduciary duty. Accurate reporting of the whereabouts of all monies pertaining to the transaction and their ultimate disposition is a fiduciary responsibility.
Reasonable Care: This duty is one to which special care should always be paid. The words "reasonable care" are only finally fully defined in many cases by a judge or jury when it's too late to change past actions, but amount essentially to the duty owed to any client by an agent/brokerage through state and Federal agency/common law and Federal regulatory law.
If you plan to work with a REALTOR® in the Bismarck area, please reach out to find out more. I would love to further explain the advantages you will receive by working together.
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