Many Boston real estate agencies pat themselves on the back for a job well done at every closing or move-in. At Charlesgate Realty, we want to do more than just that. We recognize people need housing and have housing related needs for life. It’s important for consumers to understand real estate, to understand the options available to them, and to understand how to get the best service from a real estate firm, whether that be ours or any other firm. That’s why we believe firmly in consumer education and empowering consumers to make good decisions. Blog posts like this one, the home buyer classes we offer, and the home financing screencasts, real estate advice videos to name a few, are some of the ways we do just that.
In anticipation of your next move, or your next vacancy, we strive to cultivate a relationship of trust and professionalism. Helping you understand how we work is a key part of that. An important element for you to understand is how what’s known as “agency law” can affect you.
A Massachusetts state licensed real estate agent abides by law and standards of practice regarding his/her client relationships of agency and also his/her relationships with the public. Under Massachusetts state law real estate agents can offer consumers the legal relationship of agency. A “client”, or principal, contracts the agent to an agency agreement for specific performance, to buy or sell a home. That agent has fiduciary responsibilities to his/her client. Fiduciary responsibilities include the following: reasonable care, obedience, accountability (of funds and word), loyalty, confidentiality, and disclosure. This is typically the basis of most relationships with real estate agents on the for sale side of the market.
When a consumer works with a Boston rental agent, however, the roles may be shifted somewhat. Massachusetts state law also allows a real estate agent to enter into a facilitation agreement with a consumer. See below, an excerpt from our rental brokerage fee disclosure pertaining to rental transactions and facilitation:
When a real estate agent works as a facilitator, that agent assists the landlord and the tenant in reaching an agreement but does not represent either the landlord or the tenant in the transaction. The facilitator and the broker with whom the facilitator is affiliated owe the landlord and the tenant a duty to present each property honestly and accurately by disclosing known material defects about the property and owe a duty to account for funds. Unless otherwise agreed, the facilitator has no duty to keep information received from a landlord or tenant confidential. The role of facilitator applies only to the landlord and tenant in the particular property transaction involving the landlord and tenant. Should the landlord and tenant expressly agree, a facilitator relationship can be changed to become an exclusive agency relationship with either the landlord or the tenant.
At Charlesgate Realty, a rental agent acts as a facilitator – more as a matchmaker and customer guide than a “client’s agent.” We, rental agents, facilitate lease agreements. We share knowledge of inventory, market conditions, and the lay of the land. We market and show apartments for rent. We communicate with both the renter and the landlord when hashing out terms. We account for funds and assist with the execution of lease agreements. In many respects, this tiered relationship is more delicate than traditional client based relationships, where one agent represents one principal (say, a buyer), and another agent represents another principal (say, a seller) in the same transaction. Rental agents don’t pick sides. In essence, the rental agent represents the transaction; the agreement between two parties.
image courtesy of Aidan Jones
