Question about practice contract

11 Replies

Hey guys, thanks for your time. I'm doing some practice scenarios before I take my Real Estate license test, and there's one thing I still am having a slight issue wrapping my head around, which is representation. Here's the scenario. (This is Texas, btw.)

Tim lists property for a couple, then agrees to act as the selling agent for them. 

Sam, a buyers agent, brings a couple he's been working with to the table and they put down an offer on the property. 

On the form, I'm a little confused because Tim listed property, so is he not the listing agent? But he's also acting as selling agent, so isn't he the selling agent? But the material I've read says that if you fill out the listing and selling, that's all you should fill out, but what about the buyers agent? I'm obviously completely missing something, and idk if there's more I need to add to this to make it understandable for one of you, but I'm quite confused on this one thing. 

Thanks guys

Selling agent and buyers agent are typically referring to the same thing.  Tim is clearly the listing agent, but if he's not representing the buyers, he's NOT the selling agent.

Could the question be implying that Tim is the selling agent for the couple on a property the couple plans to buy once they sell this house?

Hi @Sam Garner   Are you referring to Page 9 of the Contract?

("On the form, I'm a little confused because Tim listed property, so is he not the listing agent?")

I guess I'm confused as to what contract you're practicing on.  The TREC Standard One to Four Residential Sales Contract?  If that's it, then page 9...Brokers Information

The left side is all the Buyer's Agent.  The Right side is the Listing Broker & Agent, and the Seller's Agent, along with the ability to indicate whether the Listing Broker firm represents only the Seller or the Seller and Buyer as Intermediary.  The contract is actually structured in such as way that the Listing Brokerage &/or Agent do not necessarily have to be the brokerage of the Seller's Agent.

Is that what you're asking or did I misunderstand?

In a co-brokerage arrangement, the listing agent IS the selling agent, the agent who brings the buyer IS the buyer's agent.

A listing broker is always in charge of the sale transaction, they are the selling broker, the buyer obtains representation through a buyer's agency agreement under that agents brokerage who is ultimately responsible for the buyer's representation.

J. just had a typo I'm sure, he's a licensee, not sure if he beats the bushes as a buyer's agent, but whatever.

Remember, if you don't have the listing you aren't selling it.

That's in a co-brokerage arrangement.

When the listing agent has a buyer who is not represented by another agent, he is not representing that buyer, he still represents the owner and is responsible for the sale. When a buyer is not represented, the listing agent changes his position with the buyer, he becomes a transactional agent or similar agency relationship with out any fiduciary responsibility to advise the buyer, but may assist the buyer to facilitate the transaction. Check state law on agency relationships with only one broker/agent.

Good Luck!  

Edited, Wow, two other posts I didn't see while typing, I must be slow or typing too much :)

Is this a contract layout question or an agency relationship question, I've not seen the contract so can't say how it's laid out. Agency law is uniform but may have different names, the theory at law is that a servant can not serve two masters, they can only serve one. :) 

Awesome guys, thanks for the thorough responses.

@Hattie Dizmond  and @Kasey Villareal  So since Tim is the listing and selling agent, do I fill out the left column for Sam, the buyers agent, and the whole right column since he's acting as the listing agent and selling agent? Or is the Selling Associate not the same thing as the Selling Agent? 

If so, I've always found it a little confusing too but it's just done that way when I complete a contract. Here's an explanation I found: 

In the real estate agent community, the buyer's agent is often referred to as the "selling agent." This is pretty confusing to most of us, since you'd think that selling agent refers to the agent that helps sellers sell their the home. The term was coined back in the 1970's when it became common to have different agents representing the buyers and the sellers. Before, only one agent represented both parties, also known as dual agency. The term selling agent is still used to track a real estate transaction's progress in the Multiple Listing Service (MLS,) so you may find that real estate agents still refer to the agent helping buyers purchase a home as the selling agent.

 https://www.redfin.com/definition/buyers-agent

Right Kasey, what we say as agents/brokers isn't necessarily the legal agency relationship. it is confusing, think it's bad now, should have been around in the old days making that change. 

It's a bit of "I sold the place to my buyer", well I did, but I didn't represent the owner in the sale transaction who sold the place.

@Sam Garner  

If Tim and Sam are not agents within the same company, then Sam's info would go on the left side of pg 9 on the contract and you would check "Represents Buyer only as Buyer's Agent" if Sam has a Buyer's Agency Agreement with the Buyer - otherwise he would represent the Seller as Listing Broker's subagent.

If Sam and Tim are agents within the same firm, then their information goes on the right hand side of pg 9 under Listing Broker Firm. Tim is Listing Agent and Sam Seller's Agent.

Thanks guys a bunch for the help. I think I got all the info I need. 

Thanks!

Originally posted by @Bill G.:

A listing broker is always in charge of the sale transaction, they are the selling broker, the buyer obtains representation through a buyer's agency agreement under that agents brokerage who is ultimately responsible for the buyer's representation.

J. just had a typo I'm sure, he's a licensee, not sure if he beats the bushes as a buyer's agent, but whatever.

Remember, if you don't have the listing you aren't selling it.

Bill - You would certainly know more about this than I do, but I was taught that, in a co-broker situation, the "selling agent" specifically referred to the agent representing the buyer.  Is that not your understanding?

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