Agency is a term used in real estate to identify the type of service your real estate agent owes to you and other parties in the transaction. Agency can vary from state to state so talk to your agent for more details.
Typically an agency agreement is a written contract between a client and a real estate professional. Whether or not a written agreement is required varies by state.
Real estate representation is a contract between the client and the real estate agent to perform a service as outlined in the agreement. If there is a signed agreement in place, verify the terms of the agreement. Some Brokerages offer Agency agreements for a set time period. Some Brokerages allow cancellation at the client's discretion; some require a written request and some will not release clients until the time period has expired.
TIP: Check the status of your existing Agent relationship and review the terms of any existing agreement. It is best practice to reach out to your real estate professional to verify any existing agreements in place before engaging with a new real estate professional.
In the context of a real estate transaction, procuring cause refers to actions that begin or set in motion a series of events that lead to the final sale of a property.
TIP: If you view a home with an Agent and decide to purchase that home, that particular Agent may be entitled to compensation.
Real estate agents are paid a commission when they assist with the purchase or sale of a home. Typically Buyer's Agents are paid a cooperative brokerage fee out of the commission paid by the seller to the Listing Brokerage.
TIP: Buyers using the VA home loan product for financing may not be charged a brokerage fee or commission (VA Lenders Handbook - PDF).
Reach out to your dedicated Realty Coordinator or contact us at TalkToVUR@vu.com.
Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.