Home Buying in 94539>Question Details

Homebuyer, Home Buyer in 94539

Agent-Buyer privilege in real estate

Asked by Homebuyer, 94539 Wed Feb 20, 2013

Wondering if there exists something similar to attorney-client in legal arena ?. As we do share personal information like paystubs, w2s / tax document etc with buyer agent and lenders as well. What is the protocol ?

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Homebuyer’s answer
Thank you for responses. I do not mind sharing any personal data if there is a purpose behind it. Logically it was hard for me to understand why seller / buyers agent need those details even if they are conduit to mortgage lenders, I would rather speak with them directly.
I do share my personal with tax consultant / financial planner / lease agent etc... so sharing with lender is no big deal.

Thanks again for responses.
0 votes Thank Flag Link Thu Feb 21, 2013
Dear Homebuyer,

You do not expect your banker to share your personal financial information with anyone. The same can be said of your tax preparation professional, your financial advisor, your insurance agent and your accountant. Certainly, the same can be said of your realtor and your mortgage professional. Your personal information is just that – personal.
1 vote Thank Flag Link Wed Feb 20, 2013
To keep it simple, your real estate agent does not need to see your personal information, of course the loan officer will. The only thing the real estate agent needs to know is that you are qualified to purchase the home and if the agent can trust you and your loan officer, then the agent can move forward to finding you the right home.

1 vote Thank Flag Link Thu Feb 21, 2013
California Department of Real Estate is the governing body for all real estate licensees. In order to obtain and maintain an active real estate license, individuals must understand and demonstrate a broad knowledge of all real estate related issues. One of the most important is that of the Fiduciary Responsibility agents and brokers have to their clients. This responsibility includes the protection of proprietary or personal information which you have described. In addition, most real estate agents/brokers are members of the National Association of Realtors (NAR). NAR Members subscribe to a Code of Ethics which outlines in great detail what our duties are with regard to maintaining confidentiality personal and private information. Only NAR Members are Realtors.....I hope this helps. Dave Gravelle 510-303-1172.
1 vote Thank Flag Link Wed Feb 20, 2013
As a realtor representing the buyer, I don't ask for financial records from the buyer. But that kind of information is shared with the lender to get the buyer pre/approved for a loan.

When it comes to short sale listings, these are some of the documents that the short sale lender will require.
1. The seller needs to complete an official letter of authorization for the agent to receive and convey information regarding the seller and the property.
2. Additionally, both parties complete the Agency Disclosure which indicates that the agent is representing the buyer.

These forms were prepared and approved by the California Association of Realtors and must have been vetted by an army of legal eagles (and they have done with the rest of our CAR forms).

But if you are not satisfied, you can certainly engage an attorney to prepare a document --- which of course, will have to be vetted by the agent's (or agency's) own legal counsel.
0 votes Thank Flag Link Wed Feb 20, 2013
All realtor subscriber to strict code of ethics set by CAR & NAR. They have fiduciary duty to the client to keep their personal information private and not to share with anybody.Most of the time realtor don't need your paystubs, w2's or tax docs.lender need these docs.I hope this helps.Good Luck!!!!
0 votes Thank Flag Link Wed Feb 20, 2013
No, real estate agents don't have the same confidentiality relationship with clients as legal or medical professionals. Yes, we are ethically and legally required to safeguard their personal information, but if called to testify in court we can't claim agent-client privilege and refuse to answer questions. I've been called to testify regarding a real estate transaction that turned out to be part of a money laundering scheme and was instructed by my attorney that I had to answer questions about the client's personal financial situation to the extent that I knew about it. The money laundering actually involved fake rents that were "collected" from non-existent tenants after my client took possession, the actual sale was clean.
I hope an attorney will also answer your question with purely legal explanation.
0 votes Thank Flag Link Wed Feb 20, 2013
Absolutely - the personal information should be kept confidential. That said, I don't think our standards in real estate are quite as firm as with a doctor or lawyer. Most professionals in this field will honor them,, but one does find exceptions to every rule.

Find professionals who are well recommended in your area and ask those individuals if they keep information confidential,

Good luck,
0 votes Thank Flag Link Wed Feb 20, 2013
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