Frequently, the first person you consult about buying a home is
a real estate agent or broker. Although real estate brokers
provide helpful advice on many aspects of home buying, they
may serve the interests of the seller, and not your interests as
the buyer. The most common practice is for the seller to
hire the broker to find someone who will be willing to buy the
home on terms and conditions that are acceptable to the seller.
Therefore, the real estate broker you are dealing with may also
represent the seller. However, you can hire your own real estate
broker, known as a buyer’s broker, to represent your interests.
Also, in some states, agents and brokers are allowed to
represent both buyer and seller.
Even
if the real estate broker represents the seller, state real
estate licensing laws usually require that the broker treat you
fairly. If you have any questions concerning the behavior of an
agent or broker, you should contact your State’s Real Estate
Commission or licensing department.
Sometimes, the real estate broker will offer to
help you obtain a mortgage loan. He or she may also recommend
that you deal with a particular lender, title company, attorney
or settlement/closing agent. You are not required to follow the
real estate broker’s recommendation. You should compare the
costs and services offered by other providers with those
recommended by the real estate broker.
The
content of this article has been prepared, prescribed and
approved by the U.S. Department of Housing and
Urban Development, as required by Section 5 of the Real Estate
Settlement Procedures Act of 1974 (Public Law 93-533), effective
on June 30, 1976. This article is reproduced with permission.
However, in no case may any change, deletion, or addition be
made in its content.
