Residential Real Estate
The buying and selling of residential real estate is one of the largest financial commitments most individuals will ever make. Real estate agents generally represent the seller - as that is who pays them. Even "your" real estate agent is usually paid by the seller so by law that is who real estate agents represent. Most real estate agents are reputable and try to do what is right for their buyer clients but the fact remains that they get paid by the seller and only get paid if you buy the property.
The Residential Real Estate Transaction
Once an owner decides to sell real estate, the property is generally "listed" with a real estate agent known as the "listing agent". The listing agent adds the property specifics to a database known as the MLS. The listing agent's commission on the sale of the property is usually anywhere from 4% to 6% of the ultimate sale price. The real estate agent that brings the buyer to the deal is called the "selling agent". The selling agent gets half of the listing agent commission.
A potential buyer generally makes an "offer" for the property by way of an executed agreement of sale accompanied by a deposit. If the seller accepts the "offer", the seller signs the agreement of sale submitted by the buyer and both parties are then legally bound by the contract. What is important to understand is that if the seller accepts the "offer", there is no opportunity to have an attorney review the agreement of sale and provide you with suggestions to protect your interests. "Standard" and form agreements of sale generally lack some important provisions that protect buyers as that would not facilitate the deal closing.
Having your "offer" reviewed by an attorney in advance of submitting it to the seller is the only way to protect your interests. If you only consult an attorney after the agreement of sale is signed, your attorney lacks significant bargaining strength to protect your interests.
Once the offer is accepted the parties are bound by the terms of the agreement of sale. A closing or settlement is then scheduled to finalize the transfer of the property from the seller to the buyer as the buyer frequently needs time to finalize financing and the seller needs time to move out.