What Is A Dual Agency Agreement

“Dual agency” occurs when an agent represents both the buyer and the seller in a real estate transaction. This can cause problems and cost the buyer more. This is an ongoing debate that I am having with myself. Personally, I simply cannot justify being a double agent. It just seems ethically wrong to me. There are agents who, in my opinion, can manage double agencies very professionally, but the majority, I believe, do not do a service to everyone involved. With all the consumer protection laws and disclosures, I find it strange that this is a legally accepted practice in some states (I`m in Pennsylvania). I also find it unfortunate that so many home buyers ALWAYS think they need to hire the listing agent, otherwise the listing agent will give them the best deal. I`ve had agents say how much they hate IDX because it allows other parties to promote their listings and represent buyers! Who does not want to receive a double commission? There are a lot of hands going upstairs in the room. The problem is that the double agency does not benefit anyone other than the real estate agent! An agent must always disclose any fact that could affect the transaction. If he knows that in a few months a new road will be built on the other side of the garden wall, he must inform the buyer. However, this is unlikely to happen if you make a duplicate agreement with an agent. Eric – You should see some of the debates I`ve had online with some real estate agents about dual agency.

Many of them can`t look beyond their own wallets. Others have no idea what you can and can`t do as a dual agency. Consumers need to be extremely careful with the dual agency, as the agent who explains it rarely understands it himself. But many experts believe that a double agent can`t really serve as an agent – not in the legal sense of the word. Aside from the dual agency situation, it`s just a bad deal that you weren`t informed that there were multiple offers and your agent worked with both. It`s very unreecruessional. As a buyer who has just lost our offer through a double agent contract, we have learned our lesson. After seeing a property online, we called for a tour with the listing agent, as we had not actively searched and therefore did not have our own agent. Being a double agent is extremely stressful and puts the real estate agent in a precarious situation.

Managing a buyer and seller at the same time in the same transaction can cause the real estate agent to mix up certain documents or completely miss important information without doing so. “Dual agency is a difficult topic to understand, and it`s easy to make a mistake,” says Ailion. You may not know if the agent is really balancing the interests of both parties, which can lead to confusion. Dual agency is even banned in some states (ask your agent about your state`s rules). “The law strongly discourages conflicts of interest in the representation of opposing parties,” says Ailion. And how is it for the confusion: in Kansas City, where the subway is located in two states, the dual agency is legal in one of those states (Missouri) and illegal in the other (Kansas). “Imagine you`re literally crossing a street and you can practice what`s strictly forbidden 20 steps away,” says Anthony West, a Kansas City agent who works in both states. The dual agency can certainly streamline the process of buying a home. Think about it: if buyers and sellers have their own separate agents, there are four schedules that must be consulted before the property can be shown.

Cut an agent and make planning 25% easier. Approximately. One of my responsibilities as a real estate agent is to explain how agency law works in Massachusetts. In fact, I am required by law to explain agency law when I first meet with a potential buyer or seller customer. .