Dealing with dual real estate agentsWritten by Jakob Jelling
Historically, real estate agents have represented seller of a property. The seller, after all, is usually one who pays their commission, and agents therefore have a fiduciary relationship with seller. This in no way means that agents may operate outside bounds of law and ethical conduct of course. It just means that real estate agent is just that, an authorized agent of seller for a particular transaction.More recent trends have introduced buyer's agents, who usually work on a fee basis exclusively for buyer, and dual agents. Dual agents represent both seller and buyer, particularly in cases where agent's company is listing company. Dual agency is legal in most U.S. states; however, most consumer advocacy organizations recommend against using a dual agent. This is because there is an inherit conflict of interest for agent - they receive a commission based on selling price of property. The higher price, higher their commission, so their reasoning is that dual agents never really have buyer's best interests at heart.
| | Mortgage prepayment penalties - Just say noWritten by Jakob Jelling
One of most common terms found in a new home loan is a prepayment penalty. This type of penalty says that if borrower pays off loan early, commonly during first five years of loan, then borrower will be responsible for paying an additional amount of money, typically about six months interest on 80% of mortgage balance. Sub-prime market loans will typically carry prepayment penalties more than standard mortgage loans.You may plan on keeping house for entire duration of prepayment penalty, and be tempted not to worry about it much. But sometimes life circumstances change, so it's wise to avoid any type of prepayment penalty if you can. A typical prepayment penalty might equal five months worth of monthly loan payments, so it's worth checking on. Of course, you should always ask (before you sign) if a new loan has a prepayment penalty. In fact, ask lending officer to point out to you in document where a prepayment penalty is discussed.
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