Why do real estate agents have to disclose that they are agents when they sell their own homes?

Question

The owner of the home I'm buying is lisenced, but she sold through another agent. This was just disclosed to me, but I don't understand why I should care.

Answer 1

It is a way of letting you know that she knows alot more about buying and selling real estate than you do. It is a way of protecting you as some agents may use their knowledge to take advantage of those who may not know as much. In the big scheme of things if you are getting the deal you want, it does not make a bit of difference.

This information, by real estate law, should have been disclosed from the beginning.

Answer 2

So that people can be aware and not feel later on that they were taken advantage of. Even if we get another agent to handle the sale (An excellent idea by the way) we have to disclose that "the seller is a licensed Real Estate Agent".

Answer 3

In many states, it is the law. Real estate law is heavily based on full disclosure. If an agent knows there is something wrong with the house, whether or not it is theirs, most states require disclosure. Exact commissions have to be disclosed. Everything in a real estate transaction needs to be disclosed to prevent law suits. You don't want someone trying to suit you, stating that you had an unfair advantage or something. I think it is a good law.

Answer 4

Real Estate agents, are regulated and required to operate in a manner that allows the general public to rely upon how an agent conducts his/her business to the genera public as well as amongst its peers

These regulations are often put down in law in the form of real estate services law, which outlines the manner in which an agent is allowed to operate. In addition most jurisdictions will also require ist agents to comply to local laws, rules and regulation, one of which will be a code of ethics, membership with a board of realtors, as well as comply with a number of educational requirements, licensing requirements and insurance requirements.

In order to buy and or sell on their own account agents, their family members, and or business associates, are required to disclose their involvement, and intend with the purchase and or sale of real property, in order to allow the general public to decide and be aware who, why, when, what and how the property is to be bought, sold and or developed, so that the general public is fully informed of all material aspects of our dealings and is able to make an informed decision.

It removes a great deal of perception of the possibility of insider trading and being in an advantagious position as an agent over the general public. This formal disclosure also allows those affected by the purchase and or sale to compare the proposal made by the agent(s) with any other proposal from people not involved with the industry on all aspects, including financial compensation and access to information.

I hope this answers your question, it appears to me that you are likely affected by the requirement to disclose, other than provide an crystal clear opportunity to all parties to know what is going on, it should not really change anything to the property and the benefits you may receive from it.

Good Luck

Answer 5

Because it is the rule.....there are standards and rules in every business and that's the way it is.....and, it's not always smart for an agent to sell their own home....for lots of complicated reasons...