The Sellers need to sign the authorization form allowing this.
The buyer also needs to sign it.
Its needs to explain the agency agreement. If you signed a TRANSACTION BROKER Agreement then the agency / agent will only handle the transaction and has no loyalty to one or the other.
As a seller your relationship should have been explained way before they buyer was presented.
So if you were working with your agent as a Sellers Agent Only/ Dual Agent Possible or Transaction Broker..... that is explained the day its listed.
Even if he was a DUAL AGENT, his primary responsibility is to the seller first. So if the Buyer says offer 200k, but I am willing to go up to 225k, the agent must tell the seller what the buyer is willing to do.
If a buyer is not solid, the Mortgage Company who gave the pre-approval should have been contacted to verify if the pre-approval was still valid, the day the offer was submitted.
Many times in the REAL ESTATE MARKET - Mortgage Reps dont do their Due Diligents in giving out Mortgage Pre Approvals and deals die.
Good Example.... I had an offer on 1 of my listings from a 1st time buyer with 3.5% down.
I had the company I work with offer try to get her pre-approved and they denied her.
She went and called another Real Estate Companies Mortgage Division WE!CH3RT (Who Pre Approved her 9 Months Prior)
He basically asked her verbally what she makes did no other pre-screening and printed out a pre approval.
So i called the Mortgage agent and he said "No she is good dont worry" She is Pre-Approved.
I said... SIR, DID YOU LOOK AT HER TAX RETURNS" he said NO she told me verbally what she makes. I dont have to look at tax returns to do a PRE-QUAL. So I told him, you must waste a lot of REALTORS TIME....If you did your Job, correctly maybe the market would be better.
That being said..... Her tax returns claimed a LOSS for 2 YEARS on a LLC she opened as a PART TIME BUSINESS. SHE COULD NEVER QUALIFY WITH HER INCOME AND THE AMOUNT OF LOSS YEARLY.
This MORTGAGE REP, Gave this buyer false hope and made Me and My REFERRED Mortgage Company look bad, that we denied her. He also wasted a lot of my time.
All he need to do was request the items, and look at it. He couldnt even do that.
Sooo Pre-approvals need to come from a company the agent trusts, and the mortgage company need to appreciate the business and make sure they didnt miss anything that would get the loan denied.
Mortgage issues are hard for REAL ESTATE AGENTS TO PREDICT.
I recommend all buyers not waste their time looking till they know what they are approved for.
Buyers who are looking with out a pre-approval, will find the house that they love and lose it to another buyer bc they are out getting a preapproval they should have gotten before they started.
While it is true that agents can represent both the seller and the buyer, it must be handled properly.
The relationship must be fully disclosed and agreed to by all parties from the start.
Bearing in mind that this is a highly litigious state and these are complicated legal transactions not to mention sometimes emotional, much care should be taken.
I know in our group when one of us has dual agency, we still have an associate get involved to represent one side. It avoids any bias toward "Getting the deal done" and thus provides the best service for all. I am not saying that a person can't ethically carry on a dual agency but I think the client is better served having their own advocate.
A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situtation the agent has the following affirmative obligations to both the Seller and the Buyer.
a) A fiduciary duty of utmost care, integrity, honesty and loyalty to the dealing with either Seller or the Buyer.
b) Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both the Seller aand Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a greater price than the price offered.
Sorry to hear that you had a bad experience. If you still need to list your home, I have a few buyers that are looking for a home in the Ventura area and would be willing to help you sell your home . Give me a call.
Blanca Dover, REALTOR
Century21 Coastal Investments
Gee I am sorry to hear that, because that reflects on all of us.
What neighborhood do you want to live in and I can see if I can find you a house in that area for sale or for trade for the home you mentioned.
I have an office in Ventura.
Al Goldberg Broker
The Real Estate Fraud Advisory Team, Ventura County (REFAT’s) mission is to prevent, detect and report real estate fraud. The Real Estate Fraud Advisory Team, REFAT, has been established in conjunction with the Ventura County District Attorney’s Real Estate Fraud Prosecution Program. It is comprised of individuals from every aspect of the real estate community. Learn more here:
http://www.refat.org/ or visit them on F/B: https://www.facebook.com/VenturaCountyRealEstateFraudAdvisoryTeam
I hope this helps!