Before dealing with real estate broker, you should know that the broker’s obligations depend on whom he is representing.
If you are the owner and therefore a potential seller or landlord or if you are a potential buyer or tenant, you should know that the broker who registers the property for sale or lease is the owner’s broker, and as such is required to defend the owner’s interests.
A broker who acts as collaborator of the seller, represents the owner.
A broker who acts as a buyer’s broker represents the buyer.
An intermediary broker is one who acts as an intermediary between the parties provided that the parties have given their written consent.
The broker can help you locate a property, prepare a sales contract or a lease, or obtain financing without representing you, but it is very important that you are protected by a written representation agreement to avoid tricky situations in which you might find yourself defenseless.
The laws of Costa Rica and the Code of Ethics of the Costa Rican Chamber of Realtors require the broker to be straightforward with you.
You should ask for the broker’s references especially if there is an organization like the Costa Rican Chamber of Realtors to back him up while protecting your
interests as an owner. Require the broker to identify himself with his CCCBR license card and look at the expiration date (To be valid it must be current).
WHEN THE BROKER REPRESENTS THE OWNER
The broker becomes the owner’s broker when entering in a written tract with the owner for the sale of the property The broker representing the seller of the property can help the buyer but he clearly does not represent the latter and is required to consider first the interests of the client owner with whom he signed the contract . The buyer must not provide the broker of the owner with information he does not wish the owner to know about since the owner’s broker is required to disclose to the owner any information that comes to his knowledge .
WHEN THE BROKER REPRESENTS THE BUYER
The broker becomes the buyer’s broker when entering in a written contract with the buyer , usually a contract as the buyer’s representative and as such will be paid a ” Finders Fee ” . The buyer’s broker can assist the owner but does not represent him and should consider the interests of the buyer first . The owner must not provide the broker of the buyer with information he does not wish the buyer to have since the buyer’s broker is required to disclose to the buyer any information that comes to his knowledge .
WHEN THE BROKER ACTS AS AN INTERMEDIARY :
The broker may act as an intermediary be tween the parties by representing the interests of both of them provided he abides by the laws of Costa Rica and the CCCBR Code of Ethics . To do this the broker must obtain the written consent of each of the parties to act as an intermediary . The written consent must state who must pay the broker and must also define his obligations as an intermediary. The broker is required to treat each party fairly and impartially and to abide by the laws of Costa Rica and the CCCBR Code of Ethics . A broker who acts as an intermediary in a transaction must abide by the following: He must treat all parties honestly and fairly ; Ile may not disclose that the owner is willing to accept a lower price, unless authorized by him writing : He may not disclose that the buyer is willing to pay a higher price than the offer submitted in writing to the buyer udess otherwise authorized in writing , He may not disclose any confidential information or any other information that a party has ordered the broker specifically and in writing not to reveal , unless authorized in writing or because he is required to do so by a court order or if the information actually relates to the condition of the property and could subsequently bring problems to the buyer or to the broker himself as a professional . If he has a proper authorization of the parties the broker acting as an intermediary may designate an other broker to communicate and follow the instructions of one party and another broker to communicate and follow the instructions of the other party If you choose to be represented by a broker, you must sign a written contract with him detailing his obligations and as well as your own . The contract shall state who and how the broker will be paid . The payment of a fee to the broker does not imply that he is your representative for this requires a contract . If you have any questions regarding the duties and responsibilities of the broker, you should resolve them before proceeding .