In MN, early in any real estate transaction a licensed real estate agent is required to present the Agency Relationships in Real Estate Transactions disclosure to potential residential real estate buyers and sellers.
One of the options on this form is FACILITATOR.
Even the simplest of real estate transactions have gotten more complicated since the market crash. The process between coming to an acceptable purchase agreement and closing on the sale of the property has become quite complicated with the number of laws around disclosure and financing hurdles making it more important than ever to consult a real estate professional.
After reading through the Agency Relationships disclosure, you may wonder why people would choose to have an agent work as a Facilitator instead of their representative where the agent would be obligated to provide the fiduciary duties to their client. (Fiduciary duties are: Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care, Accounting). Here are some examples of where the Facilitator agreement is used.
Why Do People Hire Real Estate Agents as Facilitators?
Usually, the facilitator agreement option is used in family transaction or cases where a homeowner already has a buyer lined up for their property so they don't need a Listing Agent but they need someone to handle all the details of the transaction which primarily may include the following:
- education on the sale process.
- assist in determining the most probable market value of the property.
- assist Seller in knowing which disclosures to complete.
- assist in the preparation of the Purchase Agreement.
- assist the parties in completing the transaction.
- provide Seller with information about other service providers related to the real estate transaction (e.g., title services and real estate closers).
- list the Property in the Multiple Listing Service (“MLS”).
- assist in showing the Property to prospective buyers.
- place a lock box with keys on the Property.
- display a “For Sale” sign on the Property.
- provide additional agreed services.
Sometimes, buyers hire facilitators when they want to buy a property they are renting to handle all the details of the transaction which primarily may include the following:
- education on the purchase process.
- provide Buyer with information about available properties.
- provide Buyer with information about comparable sales.
- show Buyer available properties requested by Buyer.
- assist Buyer with information on the types and availability of financing.
- assist in the preparation of the Purchase Agreement.
- ensure buyer receives required disclosures from Seller.
- provide Buyer with information about other service providers related to the real estate transaction (e.g., home inspectors, real estate closers/title professionals).
- assist the parties in completing the transaction.
- provide additional agreed services
When sellers already know their buyer, having a facilitator may be less costly for sellers than having representation because the upfront duties of the agent, like marketing the seller's property or show the buyer homes, are removed. The facilitator fees will vary based on services rendered but the agent will have a minimum fee to cover their insurances and business costs to assist with the transaction. Keep in mind, the limited Fiduciary duties are limited unless explicitly expressed in the contract when an agent is acting in a Facilitator role. THE FACILITATOR BROKER OR SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY DUTIES LISTED ON THE AGENCY DISCLOSURE, EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE INCLUDED IN A WRITTEN FACILITATOR SERVICES AGREEMENT.
National Association of Realtors (NAR) recognized Designations and Certifications held by Sarah Marrinan:
- Graduate of the Realtor Institute® (GRI)
- Certified Residential Specialist® (CRS)
- Seller Seller Representative Specialist® (SRS)
- Real Estate Negotiation Expert® (RENE)
- Pricing Strategy Advisor® (PSA)
- Smart Home Certification
- New-Home Construction Buyer Representation Certificate
- Successful Relocation Representation
- e-PRO® certification
- Luxury Home Certification
- Divorce in Real Estate
A note from Sarah:
My affiliates and I understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. My team and I are dedicated to providing exceptional, personalized service for all of our clients. We ask a lot of questions and we take great pride in the relationships we build. We always work relentlessly on the client’s behalf to help them achieve their real estate goals.
Today’s buyers and sellers need a trusted professional that can guide them through the complex world of real estate on online noise.
My team of experts (from mortgage professionals to home repair) represents the best in the industry, and we’re always striving to lead the field in research, innovation, and consumer education. With our extensive knowledge and commitment to providing only the best and most timely information to our clients, we are your go-to source for real estate industry insight and advice. I have a network of agents with the same philosophy around the country - and internationally. Whether you're moving across town in the local Twin Cities area, across the country, or out of the country, we will be in your corner.
