Up until 1991, consumer representation presented a myriad of confusion for both buyers and sellers of Real Estate in Rhode Island as well as other states. For years agents and brokers owed their loyalty and fiduciary duties to only one party - the sellers of properties. Although agents were to treat all buyers fairly and honestly, their duty was to watch out for the best interest of sellers in all matters including the agent working "with" the buyer. Legally buyers had no advocate in their real estate dealings. Unfortunately most buyers were not really aware of this fact and as buyers forged relationships with their real estate agent, it became very difficult to determine who really represented who.

This came to a head in 1991 in Rhode Island where agency legislation required agents to disclose their representation to all parties and the era of buyer brokerage began. However, this still created a problem because, at least in Rhode Island and most other states, if there was no agreement to the contrary it was always assumed that all agents represented the seller of the property, even the agent working with the buyer, unless a buyer representation agreement was entered between the buyer and his agent AND the listing agent was properly informed of that fact.

This also created the problem of "dual agency." That is because the agency law at that time assigned representation to not only a particular agent, but to his whole office and company (in a multi-office firm). In other words, when an agent with company X listed a home, he created a situation where everyone in his company owed fiduciary responsibilities and loyalty to that seller - even agents who had never met the seller or had never seen the house. So if a buyer began working with another agent in the same company as a buyer agent and that buyer had interest in that particular home it automatically created a conflict of interest for both agents and the brokerage firm.

New legislation was finally passed in 2008 which attempted to correct that situation. Other states such as Connecticut also have changed their agency laws. Under the new Rhode Island legislation, it is possible for two agents from the same company to each represent one of the sides of the transaction. In that way, a buyer, as well as a seller, will have an individual who owes them full fiduciary responsibility in the transaction. Today it is imperative that buyers are fully aware of their rights to have their own representation in a real estate transaction. In that way, a buyer can and will expect their agent to work strictly for their best interests.

Need help or information about the home buying process? Pat and Gil Bricault have been in the business for over 32 years and have literally "wrote the book." For your free copy of "Homebuying 101," simply e-mail us at thefamilyteam@cox.net or call us at 401-573-0523. Also, feel free to visit us at www.thefamilyteam.com where you can search ALL homes, ALL the time.