The Real Estate Agent and the Realtor
A Realtor is a person who acts as an intermediary between buyers and sellers in selling or buying real estate properties. Real estate is real property consisting of the structures and land on it, and its accompanying natural resources like water, minerals or plants; and ownership vested in it, generally, in the form of an interest. As agent of the seller, a Realtor has to locate the prospective buyer for the property, inspect it and make sure that it is suitable for purchase, and bargain with the owner for the best price. He collects commissions from the sale of the house and then disburses the amount to the buyer. However, there are other ways in which a Realtor can be paid for his services besides receiving a commission from the sale of a house.
A Realtor may receive a portion of the mortgage payment, some of the closing costs, he also receives part of the insurance, if the house is financed through a lender, and has the option to receive additional income from any improvements made to the property by the buyer.
In order to safeguard the best interests of both parties honestly, a Realtor needs to have certain public disclosure statements in respect to his profession. A Realtor cannot practice in any part of the United States unless he holds a license from the House of Representatives, and he has to disclose all related educational and employment records. Apart from these, he needs to file annual reports with the Secretary of State revealing his financial condition. All Shelburne realtors must file copies of their tax returns. All Realtors need to register with the secretary of state so that they can offer insurance to buyers and sellers.
Caledon realtors have to maintain certain ethical standards because they work in the business of selling and buying homes. A Realtor cannot ethically manage the transaction with the buyer unless he has a fiduciary responsibility towards the buyer. Basically, a Realtor cannot act as an agent or broker for the seller without having such an ethical responsibility. Even if the real estate transaction is done through a Realtor, a fiduciary relationship exists because the realtor is acting on behalf of the seller and not for the buyer. Realtors have to follow ethical standards such as those set down by the American Society of Real Estate Agents and the National Association of Realtors.
It is generally thought that Realtors cannot be a source of financial assistance for buyers because they are only licensed to provide services. However, a Realtor can indeed arrange financing for a specific deal. In this case, the buyer would be required to have some form of collateral to qualify for the loan, which could be in the form of a house or other property. This is usually done through a mortgage broker. There are some exceptions to this rule, namely where the realtor holds an exclusive negotiating agreement with a buyer.
The responsibilities of the other realtor involved in the transaction differ according to state. It depends on the jurisdiction. A realtor shall not conduct any business that conflicts with the duty of another realtor. For instance, if the Realtor shall aid a buyer in buying a house, that Realtor shall not engage in any transaction that affects the saleability of the house. This means that a Realtor shall not knowingly misrepresent the condition of the property or fail to disclose material relevant to a buyer's buying decision.
Some people use the word 'realtor' and 'realtor's agent' interchangeably. This is largely because the term has been widely used in the real estate industry and is almost universally accepted in the profession. Even lawyers and judges have used the term. It should be noted that the term is not gender specific. It applies to both men and women regardless of age. Check out this post that has expounded on the topic: https://en.wikipedia.org/wiki/Real_estate_broker.
