Tenant Representation/Buyer Agency
Tenant Representation
and Buyer Agency are interchangeable terms that refer to an arrangement
in which a real estate agent works on behalf of the tenant or buyer to
find a property to lease or buy. Wisconsin law states that without any
other agreement, real estate agents work for the landlord or owner. The
only way to change this relationship is by using a state-approved form
called a
Tenant
Representation Agreement (or Buyer Agency Agreement). With this form
a tenant or buyer establishes that a real estate agent is working on his
or her behalf, not for the landlord or owner.
While any real estate
agent can show you properties, without a tenant representative relationship
the agent cannot offer advice, do comparative analysis, make recommendations,
or negotiate on your behalf since his or her obligation is to the landlord
or owner.
By using a tenant
representative you are assuring that you have someone on your side with
the same type of knowledge about the real estate market, terms, and language
that the landlord or owner has on his or her side.
In most circumstances
there is no cost to the tenant or buyer. The fee that the landlord has
already agreed to pay to the listing agent is simply split with the tenant
representative. This means that the services are provided to the tenant
or buyer at no additional expense. There are a couple of instances in
which the landlord might not pay a fee, or the fee may be added to the
rent rate or purchase price. In those situations the tenant or buyer may
choose to pay the agent directly.
To learn more about the advantages Tenant
Representation can provide,
click
here to read
Annette's
article* from In Business magazine, April 1998.
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