What are the differences between Buyer's, Seller's Agency and Transaction Brokerage?

Buyer's Agency is when the Agent works on behalf of the buyer. The agent is to exercise reasonable skill and care for the buyer and to promote the interests of the buyer with the utmost good faith, loyalty and fidelity in the purchase of property.

Seller's Agency is when the Agent works on behalf of the seller with the utmost good faith, loyalty and fidelity in the sell of property.

Transaction Brokerage is when the Agent does not represent either party, therefore does not advocate the interest of either party.

Missouri laws require that if you want representation, you must enter into a written agreement. This may or may not require you to pay a commission. You do not need to enter into a written agreement with a transaction broker unless you intend to compensate this licensee. These agreements vary and you may also want to consider an exclusive or nonexclusive type of relationship. Since the sale of real estate can involve several licensees, it is important that you understand what options are available to you regarding representation and to understand the relationships among the parties to any transaction in which you are involved. This information will enable you, a prospective buyer or seller to make an informed decision BEFORE working with a real estate licensee.