Historically, real estate agents have represented the seller of a property. After all, the seller is usually the one who pays the commission for them, and therefore agents have a fiduciary relationship with the seller. This in no way means that agents can operate outside the bounds of the law and ethical conduct, of course. It simply means that the real estate agent is just that, an authorized agent of the seller for a particular transaction.
More recent trends have introduced buyer’s agents, who generally work for a fee exclusively for the buyer, and dual agents. Dual agents represent both the seller and the buyer, particularly in cases where the agent company is the publicly traded company. Dual agency is legal in most US states; however, most consumer advocacy organizations recommend against using a dual agent.
This is because there is an inherited conflict of interest for the agent: they receive a commission based on the sale price of the property. The higher the price, the higher the commission from him, so his reasoning is that dual agents never really care about the best interests of the buyer.
If you have decided to work with a double agent, you will need to tell both the buyer and the seller, and both must agree in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, fairly and fairly. Dual agents can be prevented from disclosing sensitive information about each party to the other. This could severely damage trading positions.
The bottom line when dealing with a dual agent is to remember that the buyer and seller have conflicting interests in the price and other terms of the sale. It is very difficult for an agent to truly and equally represent both parties, as conflicting interests make this inherently impossible.
If you choose to use a double agent, make sure the exact nature of your relationship with the double agent is clear, what services the agent will provide during the transaction, how the agent will be paid, and how disputes will arise. that arise will be treated.
