Real Estate Agents, commonly referred to as estate agents are individuals or agencies that help with all the requirements regarding real estate. Whether you have buying, selling, renting, leasing, or even management of real estate properties on mind, all are quite efficiently managed by these estate agents.
The real estate agents are the specialists of their field and know the complete inside out story about it. They would know what all complexities are involved in trade and would thus guide you accordingly. They mainly act as a buffer between two parties involved in real estate transactions. These agents actually act as marketing professionals for a particular type of property that is either up for sale or is available on rent, and so on.
How The Term Came Into Existence?
The term real estate agents came into existence in the 20th century only. It stood as quite a generic term for all other terms or phrases related to property transactions including land agents, house agents, and the like. This term is more commonly used in the United Kingdom whereas in the United States of America, they are referred to as real brokers or real estate brokers.
What If The Real Estate Agents Neglect My Interests?
It is very commonly observed that most of these agents misguide the buyer especially in some particular states. They fully or partially neglect the interests of the buyer and just compete among themselves for the seller’s instructions and for getting the best quote for their clients.
Therefore, to safeguard the interests of the buyers and the sellers both, the government of the US has enforced certain sets of regulations upon these agents. Clearly mentioned in the Real Estate Law of the country, it is quite mandatory for the brokers to abide by these regulations.
Can The Fee Structure Of The Agent Be Regulated?
Despite being licensed by the government of the state, these real estate agents can harass any of their clients during their real estate requirements. The government has not drafted any fee regulation structure for these agents. Although the agents dealing in residential properties also charge their clients as they please but the ones dealing in renting out commercial properties flaunt all norms of decency when it comes to their fees. They charge around 7-10% of the rent in the first year as their fees. Some of the agents even go to the extent of charging the full rent for the first month as their fees. Whatever be the mode of charge, the fees charged by these brokers come as a heavy blow on their clients. In the cases related to sales of a commercial property, the agents can charge about 1% of its selling price, whereas the buyers are required to pay 2% of the buying price.
It has therefore become quite mandatory in the present scenario of the property market in the US that the government starts regulating the fees charged by these real estate agents to ban their cartel in the business.