• General
  • Do you understand dual agency?

    Marcie
    Marcie

    In some states dual agency isn’t allowed. It is allowed in Minnesota as long as both parties are informed and they give their consent. Dual agency happens when the same agent represents the buyer and the seller in the same transaction. It also happens when both buyer and seller are represented by the same broker.

    In Minnesota we have a law that says as a real estate license I have to explain dual agency and give potential clients a Minnesota disclosure document called “Agency Relationships in Real Estate Transactions” here is a copy: agency disclosure .

    Yet agency is misunderstood. If you list your house with a real estate agent and that agent brings in an offer from a buyer that she is representing you now have dual agency which means that agent can not represent the buyer or the seller but instead becomes a facilitator. The agent facilitates the sale and can not do anything to the advantage of one party and the detriment of another.

    What most home sellers and buyers do not understand is the way the word broker is used in the disclosure. If an agent from real estate company A lists a home and another agent from real estate company A brings in the buyer there is dual agency because they have the same broker.  All agents work under a broker and most people have no idea what a broker does or who that person is.

    There are a couple of large real estate companies in the area that have one broker for a few thousand agents. When they list your home they will tell you all about the networking and how they will market your home to other agents. What they don’t tell you is that if one of those agents brings in a buyer those agents go from being able to advocate for their clients to being facilitators.

    The rules are broken often as agents from two offices of the same real estate company under the same broker both advocate for their clients.

    Home buyers need to be aware when they go into an open house or new construction the nice agent who is showing them around is representing the seller and anything they say can be to their detriment later on. Buyers should choose an agent to work with who will work for them as an advocate and not just a facilitator.

    Many consider dual agency to be unethical and in some states it is not allowed.

    Related articles about dual agency Agency and dual agencyAgency in real estateAgency and the open houseAgency? What is agency?What consumers should know about agency

  • General
  • Back to small business sales

    silver maple
    Maple leaves

    School starts in a couple of weeks. There are a lot of sales and it is a great time to buy office supplies, computers, small electronics, bedding and other household items. I took advantage of the “college” section in one store and scored a pretty nice toaster and a new crockpot. Both were on sale. August seems to be the best time for sales on items that might be used in a dorm room.

    September is the month for buying office supplies. My business is fairly paperless but I do use some office supplies and this is the time of year that I stock up for the whole year. I’ll buy paper, pens, notebooks, folders and art supplies.

    Sometime between September and November I’ll be replacing my decade old laser printer with something smaller and wireless too.

    My own offspring are beyond school age . . which means I have money.

  • General
  • Delayed closings

    Delayed real estate closings are almost as common as on time closings. There isn’t any penalty for lenders who can not make the closing date but for buyers and sellers there are penalties. Sometimes a seller can not close on a home they just bought. Occasionally families have to move out of a rental and have no place to go.

    calendar
    Closing date

    The loan officer will tell the buyers that he/she can handle the closing date but there are many other departments and parties involved in the process. It isn’t unusual to check in with the lender the week before the closing and find out everything is on track only to find out the week of the closing that it will be delayed.

    Closings on any kind of condo or townhouse are far more likely to face closing delays than other types of real estate sales. In some of the downtown condo buildings it has gotten ridiculous.

    Buyers and sellers need to understand that closings are more likely to happen on time if there are at least 45 days between the time the offer is made and the closing date. With condos allow at least 50 days. Closings are more likely to be on time with conventional financing and if the buyer is making a large down payment like 20%. However is it possible to have an on time closing with 3.5% down and an FHA loan.

    Sometimes closings are delayed for hours, or days or even weeks.  Month long delays are not very common but it can happen.

    Some lenders blame the new TRID (TILA RESPA) rules which require the final numbers for persons borrowing money to be available three business days before the closing. I think it is more complicated than that and if there were some penalty to lenders for delayed closings there would be no such thing as a delayed closing. It makes sense to have “delayed closing” rules and laws as part of any consumer protection law that affects mortgage loans on home purchases.

    Home buyers and sellers need to understand that a home sale or purchase may not close on time but most will probably close eventually which isn’t useful information when scheduling a move. Sometimes buyers can get the sellers to agree to an early move in date. Other times the sellers can not move because they need the proceeds from the sale of their home to close on another home. One delayed closing can impact several closings.