As a buyer, what do you need to know about agency disclosures?
First, as it states in bold ink at the very top of the first page, an agency disclosure is not a contract. A contract is a binding agreement between two parties, and an agency disclosure doesn’t bind the buyer or the seller to any specific action.
What it is instead is a declaration of where an agent’s loyalties lie, whether it’s with you, the seller, the landlord, or some other third party. By law, they have to declare in writing whether they’re loyal to you or someone else in the transaction. They may also be acting as a dual agent, which still requires fiduciary loyalty. For example, if you hire a brokerage with multiple agents, one of those agents might be loyal to the buyer and the seller.
"A contract is a binding agreement between two parties, and an agency disclosure doesn’t bind the buyer or the seller to any specific action."
As I said, an agency disclosure is required by state law. It’s not there to confuse you or drive you crazy, and since it’s not binding, you shouldn’t worry about it. However, a lot of young agents will sometimes tell you that if you sign the agency disclosure, you have to be loyal to them, and that’s simply not the case.
If you have any more questions about agency disclosure or you have any other real estate needs I can assist you with, please feel free to reach out to me. I’d be happy to respond.