When working with a Realtor® in California one of the first California Association of REALTORS® (CAR) forms you will likely sign is a Disclosure Regarding Real Estate Agency Relationships or an C.A.R Form AD. It covers a few topics and defines the terms Seller’s Agent and Buyer’s Agent and Dual Agent. The CAR form also clarifies who is working for what party (buyers or seller or both) and what is expected of them. Although this form uses buyer and seller language, it also applies to tenants and landlords.
One of the most important aspects that I found intriguing when I started in real estate was the following “affirmative obligations” found in the AD Form:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with either the seller or the buyer.
Diligent exercise of reasonable skill and care in performance of the agent’s duties.
A duty of honesty and fair dealing and good faith.
A duty to disclose all facts known to the agent materially affecting the value or desirability of the property.
This is why working with a honest and professional real estate agent is beneficial and important. At Barrett & Associates we have dedication to the values of being the trusted resource for our buyers and sellers. This has translated into great customer testimonials, successful home sales and happy clients!
The AD form is clear that the buyer and seller are still responsible to protect their own interests and the “real estate agent is a person qualified to simply advise about the transaction.” Just as if legal or tax advice is needed you would consult a competent professional.
A good agent will review each form with you and be familiar with them to point out great advice that is easily missed such as:
“Both buyers and sellers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.”
Working with a knowledgable agent in Nevada County and Placer County for you real estate transaction will assist you to become familiar with the real estate transaction forms we generally use and help you to feel comfortable with why we use them. Please consider us for yourself, your friends and family that are making a move in Grass Valley, Nevada City, Colfax, Auburn, Meadow Vista or anywhere in our beautiful area.
We look forward to the next transaction with you!
John
Opinion piece by John Boyer, Realtor®
