At the first substantive contact with a buyer, Realtors have an obligation under New York State law to disclose the exact capacity in which they are working with their client, known as Agency Relationship. The conversation you have with your Realtor should include the fiduciary responsibility owed to you as their Agent, or what legal obligations the Realtor may have with the seller. Agency law in regards to real estate was enacted for the protection of the consumer. Consider the following scenarios:

• You see a home advertised on realtor.com, or in a newspaper, or on a yard sign. You call the Listing Agent who knows all about the house and is happy to make an appointment to show you the house. The agent is representing the seller.
• You have a friendly relationship with an Agent who has shown you several houses and gets to know all about you, your family, and why you are moving. “Your” agent, without Buyer Agency, represents the seller of each and every home you visited.

The law does require however, that in all dealings with all parties involved, the agent deal fairly and honestly, exercise reasonable skill and care in the performance of the agent’s duties, and disclose all facts known which materially affect the value of the property.

Unless the Agent discloses to you otherwise, they are representing the seller in a transaction for the sale of their home. It is the Agent’s responsibility to get the best price possible for the seller, best terms and conditions for the seller, and keep any strategic information they know about the circumstances surrounding the sale of the house confidential for the seller.

Buyer Agency turns this around. If you have a Buyer’s Agreement with your Agent, it is you who has the representation from the Agent with whom you are working. In this relationship, you receive loyalty, confidentiality and accountability from your Agent. The Agent can provide you with information about the seller that the Agent has been able to ascertain, such as reason for selling, or any other information that might make your negotiating position stronger. Your Agent can also provide you with market reports for your area of interest and develop a Comparable Market Analysis (CMA) that will give you hard facts on what similar properties have sold for When offering you these services, your Agent may ask that you sign an Exclusive Buyer Agreement which defines the obligations of each party.

Simply put, Buyer Agency allows your Agent to work as your representative and put your interests above all others.