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| DUAL AGENT Actually, this is legal but a most precarious position for an individual sales rep to find themselves in and it appears in various forms. Remember the Company is the Agent, so all of the listings of property that any Company has under contract to sell will be subject to the status of "Dual Agency" when sold by any of the company's own in-house sales staff. Consider the larger real estate company with more than 100 sales people who have a good share of the listing market which they tout weekly in the local papers. Any one of their sales reps would be considered in a "Dual Agency" when an "in-house" listing was shown and/or ultimately sold by them. The industry has been struggling with this one for years because of the "Dual" fiduciary duties implications and for all intents and purposes it is seemingly semi-effective provided the fine line of Agency is walked with integrity. Usually, two Realtors working for the same firm and selling a Company (in-house)listing and representing their respective clients (Seller or Buyer) do a reasonably good job with regard to their personal Agency obligations. However, as usual, there are always some exceptions. In simple practical terms, it is almost the same as when they sell another Company's listing as they each are representing the interests of “their” principal. Remember, it is the Company (Broker) that is the Agent and since both sales reps are under Contract with that Company, the Agency aspect is considered “Dual” A more precarious situation arises when an individual sales rep gets an Offer from their own Buyer on their own listing. Here the sales rep themselves are in an absolute “Dual Agency” position and must take care of fiduciary duty to both Buyer and Seller simultaneously. The industry has interpreted this scenario as "very delicate" and suggests the Agent should take steps previously to have both parties release the Agent of the duty of confidentiality in that eventuality. Hypothetically, this means the sales rep must disclose all he knows to both principals. Good luck! One mistake and the Dual Agent is toast. For an example the information up for grabs would include what the lowest selling price the Seller had said they would settle for and what the Buyer said he would ultimately pay for the property in previous discussions. This would include details such as the Sellers reasons for selling to what the financial situation of the Buyer may be. Buyers and Sellers being only human, are obviously curious about the other side and they well know they have the "horses mouth" also working for them and figure it is just a matter of money. In common sense, it doesn't make sense but that is the way it is... industry wide. There is a revolution of sorts going on where the North American real estate business is seriously looking at some European and British methods whereby an Agent can only represent a Buyer or a Seller on an exclusive basis because the "Dual Agency" is just too compromising. Buyer Brokers have been around for many years but not recognised as the "way-to-go" by the powers that be until relatively recently. But it is the public that have been slow to embrace the change to use them in any great numbers because they who have the listings, control the marketplace. So the public puts the agent into a dual position by default. Hold on... Single Agency is coming. Sometimes people prefer to deal with the listing Agent of a property because (they think) the Realtor may lower their commission and the Buyer will get a better deal. This is a fallacy and in fact only creates a “Dual Agency” where neither Buyer or Seller have the exclusive representation they think they have. Nevertheless, many Realtors are quite comfortable with this Agency and one can only hope that all of the i’s are dotted and t’s crossed with integrity. In any event, remember it is always your choice as buyer or seller to make the final determination as to who will represent your interests. SellersAgent101 BuyersAgent101 SubAgent101 ImpliedAgency101 UndisclosedAgency FYI The following description of Dual Agency is taken directly from the OREA Encyclopaedia: Dual Agency The same brokerage has an agency relationship with both the buyer and the seller in a real estate transaction. Dual agency also occurs when different salespeople represent buyer and seller, and are employed by the same brokerage, including those who work in different branch offices. The brokerage or its representatives must advise the seller and the buyer of the dual aspect of representation and must be impartial when representing both parties. Both buyer and seller must give their informed consent to this form of representation. The law does not allow a person to assume relations so essentially inconsistent and repugnant to each other without the authority and consent of both principals. Sounds simple eh? Back To www.realestate1o1.com |