Dual Agency. Is it right for you?
Perhaps one of the most confusing issues about real estate transactions from a consumers side, is Dual Agency. What is it? Should I agree to it? Did my Realtor explain it sufficiently?
What is Dual Agency?
Simply this is when your listing agent, who is acting for you as a sellers agent, also becomes the buyers agent for the purchaser of your property. One property, the seller/s, the buyer/s, one agent.
What Dual Agency is Not!
If you are selling a property and utilizing an agent, you may also need to buy a new home and you ask your sellers agent to help you buy a new home. Two different properties, same client, one agent. Unless of course you buy another property listed by the same agent, and the agent now acts for the other seller and you in the transaction for that property.
Do I need to know about Dual Agency?
Absolutely you do! And absolutely every agent, whether a Realtor or not, is bound by the law to explain Dual Agency to you at the very beginning of your transaction agreement.
How do I decide whether to agree to Dual Agency?
Listen to the explanation your agent gives you and decide based on that information. If you are at all uncomfortable with what you are hearing, I would suggest you decline, as if you are not comfortable with it at the outset, you are most likely to become less comfortable with it as time goes by. Also know that in every transaction there are two sides, sellers and buyers. Both sellers and buyers have to agree to allow the agent to represent them both.
If I want to buy a home and the sellers agent has introduced me to the home, but I don't want Dual Agency, how can I buy it?
Every agent likely has a back up agent to call upon in this event to take over the buyers and become their agent. Alternatively, as long as I am not your sellers agent, call me. I would be happy to represent you as a buyers agent. I am an Accredited Buyer Representative.
So what can a licensed agent do for clients when acting as a Dual Agent?
Treat all clients honestly.
Provide information about the property to the buyer or tenant.
Disclose all latent material defects in the property that are known to the licensee.
Disclose financial qualification of the buyer or tenant to the seller or landlord.
Explain real estate terms.
Help the buyer or tenant to arrange for property inspections.
Explain closing costs and procedures.
Help the buyer compare financing alternatives.
Provide information about comparable properties that have sold so both clients may make educated decisions on what price to offer or accept.
What a licensee CANNOT disclose to clients when acting as a Dual Agent.
Confidentail information that Licensee may know about the clients, without the clients permission.
The price the seller or landlord will take other than the listing price, without the permission of the seller or landlord.
The price the buyer or tenant is willing to pay without the permission of the buyer or tenant.
A recommended or suggested price the buyer or tenant should offer.
A recommended or suggested price the seller or landlord should counter with or accept.
If you need advice on whether to agree to Dual Agency, don't ask the agent, seek advice from an Attorney.
I hope this has been useful.
Remember as an Accredited Buyers Agent, I would be happy to act as your buyers agent, when you next decide to buy a home. So if you see a sign outside a home and want independant representation, call me on 847-381-6328.