Yesterday when I talked about what the term Realtor actually means, I mentioned that in Alaska, real estate salespeople (including brokers and associate brokers) are called licensees instead of agents. Does that really matter?
Hard to say. The change came about because of problems with consensual dual agency - one agent was legally able to work with both buyers and sellers in the same transaction. The idea was that as long as all parties agreed in writing, one agent could work a transaction with the best interests of all parties in mind. The problem, of course, is that these interests are often conflicting. The buyer, for instance, wants the lowest possible price for the house. The seller naturally wants the highest.
It used to be that no one had to worry about dual agency because no one represented buyers. In real estate it was caveat empetor - buyer beware - and all agents looked after sellers, while buyers were on their own. No wonder real estate salespeople got bad reputations. Buyers felt like they got the shaft, and if seller's agents were doing their jobs, they probably did.
Thankfully that changed. Buyers can now have their own representation in a real estate transaction. In Alaska, real estate statutes and regulations obliterated the terms agent and agency, so there's no possibility of dual agency and its inherent conflicts.
But wait, you say. My Realtor - or licensee (do you know the difference now?) - worked with both me and the seller. Was that illegal?
Not at all. Now we have a system that allows clients to authorize a licensee status called "neutral." More about that tomorrow.
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