What is Dual Agency?

When a property owner puts their home or land on the market with a real estate agent, they will sign a listing agreement with their company. This listing agreement covers a number of points, services, and conditions, and is intended to protect the general well-being of both the owner and agent. The specifics covered in listing agreements differ according to state laws, company policies, and local governing organizations; however, property details, price, commission, termination date, special assessments, and Dual Agency seem to be pretty standard. The most confusing of these is usually Dual Agency.

In a traditional real estate transaction, a property owner is represented by a listing real estate agent. When a buyer is interested in the property, a selling agent will present the offer to the listing agent, who will in turn present the offer to the property owner. While real estate agents cannot give legal advice, they are educated to know the laws of real estate and how they affect the sale of a property. It is the job of both agents to protect their client’s best interests by making them aware of all their options and the consequences of those options. This includes advising them on the fair market value of the property and their jobs as sellers or buyers according to state and national laws.

“Dual Agency” is a term for when a real estate agent represents both the buyer and seller. This can happen if the agent is acting as a selling agent with a buyer and that buyer decides they want to purchase the agent’s listing or if an unrepresented buyer decides they want to buy the home listed by the agent. When Dual Agency is initiated, the agent’s role as negotiator changes. He/she must work for both sides of the transaction in a fair and equal manner. Some buyers and sellers do not feel comfortable having an agent working for both sides. In that case, the real estate company can appoint another agent to represent that party.

The term “Dual Agency” also refers to two real estate agents from the same company sharing a transaction. If a property owner chooses not to allow Dual Agency, it could quite possibly bar other agents from the listing agent’s company from showing the property. That can have a significant impact on the number of buyers who see a home. If Dual Agency is initiated and a selling agent from the listing agent’s company brings an offer from a buyer, there will be no change in negotiation. Each agent will work diligently for their side of the transaction.

It’s very important for property owners to discuss with their listing agent how Dual Agency will affect them. Sellers should know the facts so they can properly determine if Dual Agency fits their needs. While it may downgrade the agent’s negotiation power, that’s often outweighed by the benefits of making the property available to all potential buyers.


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