Dual Agency - Am I getting the representation I deserve?

First of all, some of you might be asking yourself, what is dual agency?

A dual agent or in Alabama it is called a Limited Consensual Dual Agent, is someone who works for both the buyer and seller on the same transaction. Our Real Estate Brokerage Services Disclosure (or RECAD for short) defines it as a licensee for both the buyer and seller. It also states, that this may only be done with the written, informed consent of all parties. Furthermore, this type of agent must also be loyal and faithful to the client, except where the duties owed to the clients conflict with one another. Now I am here to tell you what all of that means.

The two most important things with Dual Agency is that it must be in writing, and both parties must agree to it. If not, there is no dual agency and the transaction cannot move forward.

There are certain rules that a Realtor must follow when he/she is a Limited Consensual Dual Agent. The first of course, is to keep confidential any information that your client does not want divulged, that is true for both scenarios. The second is that a Realtor cannot tell either clients a exact price to accept, deny, or counter.

Secondly, how does dual agency come about?

Dual Agency usually results from two scenarios. The first is when a single Realtor represents both the buyer and the seller. The second way is if one Realtor represents the buyer and a another represents the seller but they both work for the same company.

A example for the first scenario (a single Realtor for both the buyer and seller) could be, if I have a property listed for $350,000 and I know that the sellers would take $300,000 because they are ready to move right now. Throughout the neogotiations, I could not tell the buyers.

Like wise (using the same example) since I am representing both sides and the buyers tell me they would pay $360,000 for the home because they just love it, I could not go back and tell the sellers they would pay even more than the list price.

I have an obligation to look out for the best interest of both parties, and it can be done.

A example of the second scenario (a Realtor working for the buyer, another for the seller and they work for the same company) would be if I am working for the seller, and I have the $350,000 home listed. So I am just looking out for the best interest of my client, the sellers.

The other Realtor has the office right next door to me. I walk past and over hear the buyers telling their Realtor that they would pay $360,000 for the home as they are writing up an offer. My first thought would be, I need to get on the phone with my clients and tell them whatever they offer, they are willing to pay $10,000 more than the list price, but I can't.

I am not allowed to instruct my clients on a specific price to accept, deny, or counter. I can still furnish all the information to have them make their own decision, but I cannot actually tell them a price.

It is the same as if my clients were in my office and the other Realtor over heard my clients saying how bad we need to move and we will take $50,000 less if we have to. So everyone is protected.

Dual agency is in place to make sure everyone is treated fairly and equally.

So now that you have a understanding (well hopefully) of what dual agency is, the big question is...

"Do I get the representation that I deserve?"

Yes, you can get the representation you deserve. Just make sure that you trust your Realtor, which you should anyway, regardless of the situation.

A Realtor can still assist both clients, or a single client in all other aspects of the sale.

I hope this have given you a little insight into Dual Agency.

If you have any questions, feel free to email me at mike@gohsv.com.

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