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As a Dual Agent, are you like a Double Agent? - Dual Agency - Buyers Beware!!

By Jeff Belonger

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

August 10, 2009 03:40 AM

Dual Agency

Dual Agency can sound like a harmless word, right? We are suppose to trust anyone in the real estate and mortgage industries, right? Sounds simple enough when the person representing you says that they have your best interests at hand. But wait, let's dig a little deeper, because not every realtor will explain it correctly to you, hoping that you truly don't understand both sides of the equation.

Let's define Dual Agency. - Is when a real estate agent is representing both the seller and the buyer at the same time in the same transaction.

Since we are on the topic of dual agency, there is also the term designated dual agency. This is where you have two different agents from the same real estate office, in which case, one agent has the seller and the other agent has the buyer.

Now, before we get started, I need to clarify something. I am not a realtor, just a loan officer of 16 1/2 years in the mortgage industry. I wanted to share this topic from an outside perspective, because this just happened to a client of mine who is purchasing a home. Some realtors will agree with me and some will disagree. Looking for any kind of opinion so we all can learn more about this.

honesty, truthy, integrity

When a listing agent agrees to sell your home, one of their spiels is that it's their job is to get you the highest offer and best terms. Sounds great, right?.

When an agent representing you, the buyer, their job is to try to get you the lowest offer and the best terms. They are called a buyers agent.

Now, I am sure many realtors will define these terms in more details. I am just trying to paint an easy picture to comprehend. Question.. how can a realtor, as a dual agent, say that they will get you the best terms, both as a seller and a buyer. Isn't the agents duty to the seller first? Yes it is.

telling the truth - being honest - being upfront

So let's do the simple math here, which I love, since I do mortgages for a living. As a listing agent, my priority is to get the best deal for the seller. As the buyers agent, my duty is to get the best deal for the buyer. hhhhmmmm

Can we honestly say that I can accomplish both at the same time? It's almost like those individuals that claim to be both a realtor and a loan officer. A totally different subject that I will talk about later this week, but in all honesty, how can you say that you can perform both jobs to the best of your ability. In the case of my dual agency example, the ability to get a great deal for both parties. Isn't there are a conflict of interest?

And what about the agent's commission? In many cases, the dual agent will get both the commission set aside for the listing agent and the buyers agent. Food for thought.

Conclusion : I am sure there are many ways to look at this. In regards to my current client, he didn't really take my advice when I found out that he was putting an offer on a house himself without a buyers agent. I explained to him my concerns. The ending result now? Looks like he won't get the best deal. He had his own thoughts prior to my suggestion and he thought it would be cheaper if he did it himself. Not only did the agent counter with a higher offer, but has placed a contingency in the offer stating that if the house doesn't appraise for the purchase price, that he has to come up with the difference. And after doing some research, there is a 6% total commission involved and the house is being purchased for $395,000. You do the simple math. I spoke to this agent and she didn't even offer any of her commission to make this deal work.

Now, for those of you that scream, don't offer up your commissions. I agree to a certain extent. But business is business and I want more referrals. I myself would have offered giving the buyer an additional $3,000 in seller contribution. Tim Moncrief wrote that it's okay for a real estate agent to reduce their commissions. I agree and disagree, but I think his topic has more reality when it comes to an agent that is a double agent, I mean, dual agent. Please read : It's okay for clients to ask for reductions in your commissions. Deal with it.

Lastly.... I know several real estate agents who I respect, who have the sellers, who wouldn't take an offer on a property if the buyer came to them directly. They would refer it out or to their buyers agent. It's because they understand the basic concept that it would be impossible to obtain the best deal for both sides as an agent for both seller and buyer. I have even spoke to many agents about this topic and they all agreed. But there are always two sides to any story, hence why I wanted to write about this.

And keep in mind, in some states, dual agency is prohibited. And some laws regarding dual agency are different from state to state. If not sure about any of this, speak to an attorney or a buyers agent.

UPDATE - 9-8-09 @ 11:45 pm - Larry Riggs stated this... Larry's comment - Question to all dual agents out there.... When do you talk to the buyer about this?

When the buyer first shows interest in the property?

A few days later?

During the buyer's first offer?

Or when terms and price are agreed upon, and when you send them the contract of sale, the agreement of sale.

I bring this up, because an offer has been made and accepted on behalf of my buyer, and the listing agent still hasn't explained dual agency. And in NY, they are very strict on this. I did my research and think the buyer isn't getting the best deal.

My whole point to this blog post? In several states, you have to disclose this to the buyer upfront, even if you are entertaining an offer and know the buyer doesn't have a buyers agent. You don't have to have an agreement of sale for this not to be talked about.

Alan May replies with a very good, detailed comment that sheds some light. - Alan's comment -

Since we are on the subject of listing agents - Please read : Sellers, ignore what your listing agent tells you about FHA loans !!!

Update : as of 8/11/09 around 7 pm

My client called me tonight - I recommended a realtor to be his buyers agent. More things started to get out of hand. The listing agent, who never disclosed dual agency... and the fact the borrower never signed a buyers agreement or any offer, has now been told that he must either use her or someone in her office to represent him as the buyer. I told him that is illegal and not ethical. To get a lawyer and or talk to the broker of record.

Dual agency Laws in these states : (click the state) In a few states — Colorado, Florida, and Kansas — dual agency is prohibited. And these links are updates from realtors. Disclosure : Please speak to an attorney about any of this if not sure.

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- Florida - Florida -

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Ken Crotts

eXp Realty - Maple Valley, WA

Combining Experience and Innovation

Dual agency is always a very hot topic for agents and other industry related professions. I do not practice dual agency but I do write up my own listings on a regular basis. When I receive a call from an interested buyer on one of my properties I show that buyer the home. More often than not the buyers are looking for property at a time when their agent is unavailable. I am happy to show the property because it gives me, the sellers agent, a chance to show the property, qualify the buyer, get direct feedback and potentially facilitate the sale of the home.

If the buyer is interested and starts asking questions indicating they may want to make an offer I explain at that time that I do not represent both parties in a transaction and will be representing the seller. They are free to have another agent or attorney represent them or I can refer them to another agent.

So far none have elected that option. They are fine making the offer and proceeding with the sale. I do not induce them by offering to lower the commission or making a deal. Commissions are not a part of the discussion because they have nothing to do with the sale or the buyers qualifications. Negotiating commissions as a part of a sale diverts attention from more important issues like inspections, title, buyers ability to close, disclosures and other more significant topics.

I appears the dual agency is most important to agents. Explain agency, let the buyer choose how they want to proceed, and sell the house representing your seller. It's not that complicated.

Ken Crotts, Broker

Windermere Real Estate

Certified Short Sale Specialist

Aug 11, 2009 04:33 AM

Bob & Carolin Benjamin

Benjamin Realty LLC - Gold Canyon, AZ

East Phoenix Arizona Homes

Dual Agency has to be disclosed and there are forms everyone signs in Arizona. It does not happen much of the time - at least not for us -- but on the rare occasion , when it happens, if disclosures are all made and there is agreement it works.

Aug 11, 2009 04:37 AM

Vince Perna

Dunes Properties of Charleston - Folly Beach, SC

Folly Beach, SC

I agree with you on the dual agency issue because I have always believed in real estate one person cannot represent two separate people fairly.

However, you are dead wrong about representing them as a realtor and securing the financing for them. There is absolutely no conflict of interest present here. I transitioned into real estate from loan originating because as I was pre-approving buyers, THEY asked ME where to find the house. Once I became a realtor, clients again ASKED ME to do their loans. If you are not keeping up with the industry than you are doing your client a disservice, but if you are on top of each industry, there is no conflict of interest. I built up a referral network BECAUSE I could do both.

I will admit that I have quit doing mortgages because I could not keep up with the daily program changes, and I felt like someone else could represent them better. However this is a different issue than an apparent conflict of interest doing both jobs.

Aug 11, 2009 04:45 AM

Bill Gillhespy

16 Sunview Blvd - Fort Myers Beach, FL

Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Jeff, You started this post by disclosing that you are not a Realtor. In a position of helping people get financing there are many opportunities to tilt the table to the advantage of the person " representing " the buyer. So to with any transaction. My point is simply this: Disclose up front ( as you did ! ) to both parties that you will be in the middle and that you are prohibited from creating any unfairness in helping both parties reach an agreement. Disclose up front and offer to have either party represented by another agent. Ideally, a dual agent is trying to get both sides to see the value of the property - not to have either side pay too much or too little !

Aug 11, 2009 05:06 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

KATERINA - comment # 30 - ..... . first off, I know this about Florida. Secondly, from seeing how you and Nestor handle your clients, I can see why you wouldn't have any issues with either side of things. You both explain things very well. Overall, ethical or not, what stirs my boiling pot are those realtors that don't explain it until after the fact. There is a code of ethics violation and in many states, this is illegal to a certain extent. Thanks for your feedback.

ALAN.... - comment # 31 - ..... . bingo... hence why I wrote about this, because it was never brought up for 4 days, even when they started to negotiate. As of today, 8/11/09, my buyer has obtained a realtor that I found for him in Long Island... thanks for your continued comments and feedback.

JEFF P. ... - comment #32 - ... . sounds good and thanks for stopping by.

JAMES & AMY... - comment #33 - ... . I agree 110% on both, the fact that you can't always avoid these types of transactions... and that you need to INFORM and EDUCATE... thanks for the feedback about PA.

TOM B. ... . - comment #34 - .... . I agree... you can be fair, but I just don't believe that you can get both sides the best deal at the same time. thanks

Aug 11, 2009 05:08 AM

Georgie Hunter R(S) 58089

Hawai'i Life Real Estate Brokers - Haiku, HI

Maui Real Estate sales and lifestyle info

Dual agency can work, and does work. All parties are treated fairly and honestly, that's what we Realtors do. It's the seller and buyer who decide on the price and terms of the contract, not the agent. The agent is there to assist and relay messges, and keep things on friendly terms. There is no reason why one agent cannot represent both parties and come to a happy ending. All parties are aware of the situation from the beginning and they agree to it in writing. It can be very simple actually.

Aug 11, 2009 10:01 AM

Anonymous

How about the local Southern CA Inland Empire, Husband & Wife REO listing team.I have submitted many good offers in to their listings , but when you check the closed sales from these two, 9 out of 10 have HER as the listing agent, & HIM as the selling agent. Smells fishy to me, especially since I know that my clients have put in an offer that was just as good if not better than the one they accepted. Makes me wonder if my offer ever made it to the bank in the first place.Just my 2 cents.

Aug 11, 2009 11:28 AM

#86

Bill Armstrong

Coldwell Banker - Succasunna, NJ

Dual agency should not be allowed. There are so many reasons why it absolutely should not be allowed. Let's start with not being able to fairly represent both sides. Now combine that with putting people into a situation where they can make double the money in commission. I have had situations where a buyer, represented by someone else, was considering my listing and one of the other agents. I was emailing info about my property to the buyer agent for her to tell her people, because it was a reduction in property taxes that just got approved. When they came back for a second visit I happened to be at the house when they showed up and mentioned the lowered property taxes to the buyers in front of their agent. Amazingly, they had no idea what I was talking about. I asked the agent, didn't you get my email? Her response after mumbling something was uh no I don't remember. She was trying to push these people into one of her listings in the area, instead of the one they really wanted, which happened to be mine. Also, you have to take into consideration certain real estate companies and the commission structure they have in place. They will only make a decent paycheck if their clients buy one of their listings, not someone else's. Dual agency is one of the many problems with the real estate industry. But with all the talk from the governing bodies of real estate about wanting to make sure everything is legal, they don't seem to be putting the policies in place to make sure that happens.

Aug 11, 2009 11:47 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

ROB..... . - comment 35 - ... . you just made part of my argument, that you can't say everything that you want. So my question would be, "whose best interest does one have then?" thanks

JOHN... . - comment 36 - ... . I think you look at it in a good perspective. One thing to make clear though, I am not saying that agents have to give up commission, but if it can make a deal work and help the buyer, without taking anything extra away from the seller, why not... especially if there is more than 15 k in commissions. Does it then just become greed? Does one realize, that if you show both the seller and buyer this, bringing it to their attention, that you could get more referrals from this, which leads to more money?

JAYNE.... . - comment 37 - ... . that's all that I would ask for, work the best that you can. My main argument to this all ... is can one honestly say that they can get the 'best deal' for both sides on the same transaction. thanks

RON.... . - comment 38 - ... . that was my whole problem with my scenario... it was never disclosed up front.. and it has gotten worse now.. I just added this part to my blog at the bottom. Please read this part... it's sad and in my opinion, a disgrace to all realtors out there. thanks for your feedback about MD.

ALMA ... - comment 39 - ... . well, I do believe that it can be worth it... but it comes down to the fact, can you honestly get the best deal for both sides. ???? thanks

LAURA... . - comment 40 - ... . in your comment, I have no problem with that, that you handle it ethically. But I do see conflicts and that is if a realtor tells me to my face, that they honestly believe that they can get both sides the best deal on the same transaction. I think we then would be splitting definitions... meaning, sure, I believe you could get both a fair deal, but not best deals. What are your thoughts on that? And my main reason for writing this was because she did not disclose dual agency and did add that stupid clause about the value of the property not appraising. thanks for your input.

Aug 11, 2009 04:38 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

UPDATE : as of 8/11/09 around 7 pm

Aug 11, 2009 04:46 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JOAN...- comment 41 - ... . I agree with everything that you have stated. Not sure why you got more nasty comments back then... maybe because there were more realtors back then that were less professional and just didn't understand all of this? Just as I come across loan officers that think keeping all the yield spread is okay, even if it means that they are making 15 k on the deal. There are so many ways to look at this.

In regards to the cartoon... I think it is priceless also. I would have given the person credit, but I found it on the internet with no rights, no signature, or anything else to let you know who the artist was. thanks

DENISE... - comment 42 - ... . I agree with you 110%, hence why I decided to write about this, even though I am a loan officer. I think some people confuse the words fair and best.... and yes, I just don't see how you can honestly say that you can get both sides the best deal on the same transaction.. lol Fair, yes... best, no.

KRIS.... - comment 43 - ... . no... not yet. I just wrote an update that took place around 7 pm tonight. He actually took my advice and had a home inspection done. No contracts have been signed as of yet. And now she is forcing his hand to either deal with her or her office, but told him he can't talk to anyone else. Well, I am not a realtor, but in reality, he never signed a buyers agreement, any contract, etc, etc.. What do you say about that? thanks

MARGARET.... - comment 44 - .. . I know laws are different from state to state. And yes, I get upset when a realtor talks about mortgages, rates, and good faith estimates, acting like they know it all. But if you read my blog again, I stated that I am a loan officer, and that my main point of this was that the agent failed to disclose any of this upfront. I attribute this blog as an awareness blog, educating buyers to just beware... and that's it. I think I gave every disclosure regarding all of this. I think I did no wrong... and if you read the comments, many are with me on this. But I do thank you for the compliment in the beginning and for your feedback.

PS.. I do not think I am practicing real estate here. This was a third party view to make sure my client was represented correctly. I advised him to talk to a lawyer and another realtor.... and that was it... do you think this realtor is in the right? Please be honest, in regards to what I wrote about the scenario. thanks

Aug 11, 2009 05:06 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

KEVIN.....- comment 45 - .... . taking part of it is not my biggest problem... it's those that don't disclose properly or educate. Just as those same loan officers that don't do a good faith estimate properly or educate the borrower on the process. thanks

KIM....- comment 46 - .... . bingo and this is the same in NY... and this was not done the first time, second time, or even the third time. And now she is trying to force his hand by telling him that he must deal with her or someone in her office, but no one else... and he didn't sign any buyers agreement or any offer. She is dead wrong and there is major liability now.

MICHAEL... - comment 47 - .... . hey, you could be a 2 woman man and a 2 client property... but it depends on if you let the other parties involved know about this. Just as in dating... if you are dating others, it's only fair to let them all know this... but I also hear that many don't talk about this, that they don't disclose this. thanks

PAUL .... - comment 48 - .... . thanks for stopping by and for the kinds words. I have dealt with this several times, and I just had to finally write about it. thanks

CHRIS... - comment 49 - .... . it sounds like you take a good approach to this and disclose to all parties involved... thanks for sharing this.

Aug 11, 2009 05:13 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

ANDREA.. - comment # 50 - ... . yes, I know dual agency is different from state to state. I disclosed that in my blog. When it comes to subjects like this one, I make sure I properly disclose and educate. And yes, these can go smoothly. My main point was that this realtor didn't disclose anything. It's good to see that you are thorough about this. But one important question. You made this statement... "And FYI, I did get the best deal for all concerned, and believe me, both deals were fraught with issues which I handled with the highest regard to both clients."

I have gotten to know you over the last 6 months or so.... I am sure you did your best. But can you honestly say that you got the 'best' deal for both sides? How can that be so, when you are trying to get the seller the best deal. Could you have gotten them an extra $5,000, but wanted to see the buyers treated fairly also? That's my whole point about this... getting someone a fair deal is okay, there is nothing wrong with that. But getting both sides the best deal? It would be like a divorce attorney getting the best deal for both sides... in my opinion, it just can't be done. But as I mentioned, I know people like yourself, that would do your best. Thanks for sharing..

MARTIN... - comment # 51 - ... . when I get a moment, I will go back and read your blog. First off, I don't think there is anything wrong with the buyer wanting to deal with the listing agent to try and work a better deal out. This can happen, but it comes down to who you are dealing with. Now, on the flip side of things... why take that risk though. Just get a buyers agent, this way you are not second guessing yourself. Overall, we do agree that we don't see it possible, that you could expect the best deal when someone is representing both the seller and buyer at the same time. thanks

IAN ... - comment # 52 - ... . lol... I expected more also. Some people just don't like to ruffle feathers.. or be upfront... or just speak their mind. I do... I have no problem with a healthy debate. It's one way to get issues out there and sometimes you can learn from the other side, as long as you have an open mind. thanks for stopping by.

CARLA .. - comment #53 - ... . Thanks for stopping by... you made this statement...

"Agents who take the listing have ALREADY set a contract in place for commissions to be paid by the seller. If Joe HomeBuyer thinks they can work out a better deal with the listing agent, they are -- essentially -- interferring with a contract, i.e., the listing agreement. ANY listing agent working out a "deal" with Joe HomeBuyer based on them re-negotiating their commissions to get Joe HomeBuyer a deal is violating a TON of ethics. And, if I were the seller and found out about it, I'd take BOTH my listing agent AND Joe HomeBuyer to task!"

I am going to disagree with this... yes, there is a commission in place. But you as a realtor can reduce your commission and give it back as a credit, if you wanted to... that you saw fit in doing this. As long as the seller still walks away with what is in the contract, how is this violating any ethics? I am not trying to fight here... but do you have this in writing? Just curious...

In regards to number 3... how can you say that you aren't allowed to represent both the seller and buyer, that it's illegal to do so.??? It's illegal in some states, not all states. So aren't you just throwing out there your opinion, in what you believe? Again, it is legal in many states, yet you say it's illegal. What proof do you have of this? I do agree though that it can be a conflict of interest. And thanks for your feedback, for your input, and for the compliment.

Aug 12, 2009 02:01 AM

Jeff Payne

The Payne Group at Keller Williams Success Realty - Panama City, FL

Panama City Real Estate

Jeff, this blog has gotten alot of attention both for and against. No matter how you slice it, if the agent is slimy and unethical, they willl always find a way to cheat the system; however, not all agents are like that. I have sold many, many of my listings over the past few years, that is what the seller hires me to do. I am not party to the contract, I simply co ordinate the transaction. Buyer wants to pay X, seller wants Y, I convey to that to each party and let them make their decision. The seller sells the home for the amount that the buyer agrees to pay. In no way is that wrong as long as the buyer and seller agree and the agent facilitates the transaction. As far as getting paid on both sides, I also see no problem with that. My sellers hire me to sell their home and expect me to bring buyers to them.

On a side note, last year I made the decision to build a team and now I only work with sellers and have buyer specialists work with the buyers, not because I don't like getting both sides, because it allowed me to work more listings and still be able to service the buyers.

I know that you are not saying that all agents are crooked because that is not the case, don't let a few rotten apples spoil the bushell

Aug 12, 2009 02:12 AM

Anonymous

Joseph Marovich, ABR,ABRM,ASR,e-PRO,GREEN,GRI,PMN,RSPS,SRES

As a long time trainer/teacher/educator of the Accredited Buyer Agent course and serving as an expert witness in a number of dual agency cases, I can speak (and have written) about dual agency a lot. Let's start with the understanding that the word AGENT means REPRESENTATIVE, and what that means is the an agent represents the interests of their client, as has been explained well in several comments. An agent owes 6 fiduciary duties to their client, be it seller or buyer, and they are 1. Obedience, 2. Loyalty, 3. Disclosure, 4. Confidentiality, 5. Accounting, and 6. Reasonable Care and Diliigence. For the purposes of this commentary I will limit my explanation to the 3 fiduciary duties LIMITED by dual agency. First, LOYALTY. Loyalty means 3 things: allegiance, advice, and advocacy. If I represent a buyer as illustrated above, I owe that buyer client (or seller client) my allegiance, all the best advice I can give him/her to advance their objectives, and a strong advocacy for them to get what they need. Secondly, DISCLOSURE. I must disclose to my client all information that would give them an edge over their competition in achieving his/her goal. Why the customer (non-client) is buying/selling, for example, could benefit my client. If I know it, I disclose it, just as I would disclose any known defects about the property. Thirdly, CONFIDENTIALITY. I must keep confidential anything I learn from my client to keep their interests protected from their opponent who may use that knowledge to further their objectives. You'll have noticed that I didn't say anything about obedience, accounting, or reasonable care and diligence. Why? Because in dual agency they are not limited. I still have to be obedient to the clients wishes, account for all moniees tendered, and be competent in the service I give to buyer and seller clients. With that being said, a professional licensed agent, after explaining the above to their clients, making sure that they understand that they are giving up loyalty and disclosure of the other client's confidential information, can, should, and must receive INFORMED CONSENT by the client to operate as a dual agent. Once that consent has been received the ethical and professional licensee can operate as a disclosed dual agent without harming either client. The client knows that they have given up advice and advocacy and disclosure and are willing to do that for an assortment of reasons. Where Designated Agency is available in some states, that is the preferred way to practice dual agency.

Aug 12, 2009 08:16 AM

#94

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Jeff, thanks for your reply. I'm curious to hear all of this turns out. I also hope that your client is able to purchase the home that he so clearly wants on terms he is comfortable with.

Aug 12, 2009 08:47 AM

Alan May

Jameson Sotheby's International Realty - Evanston, IL

Home is where the hearth is.

Jeff, regarding your "update" #89.

Once your client began the purchasing process (and actually before that)... they became embroiled in something we Realtors call "procuring cause"... which has more to do with "who gets paid the buyer's side commission" than anything to do with your client.

procuring cause is probably just as controversial as dual agency... but basically it addresses "who showed the house" to the client, and how they followed-up with the client... an unbroken chain of events leading to the purchase. Interestingly enough one of the ways to "break that chain" is for the buyer to fire their agent.

Since the firing took place, well into the purchasing process... that muddies the waters severely, and the agency's attempt to switch you to another agent within their office seems a fair and compromising (in a good way) solution. I can understand why your client (and you) would want to the agent that you've chosen... but you can understand why the agency is trying to maintain something good out of this fiasco.

Perhaps, a good solution might be for your "chosen" agent, to contact the agency and agree to share the commission with them, in some fashion... (maybe a showing fee, a referral fee, or a flat percentage of the buyer's side commission)... that way the agency would be satisfied (assumedly), and your client would get to use the agent of his choice.

All of this should be "behind the scenes machinations" that should not involve your buyer... the buyer should be allowed to use whomever he wants... he needs to feel some confidence in his chosen representative.

Aug 13, 2009 01:16 AM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

LUPE.. - comment # 56 - .... . it depends on your home state's laws and rules. And yes, if disclosed properly and discussed about, there should be no problems. And not saying that you said this, but to say that you can get the best deal for both parties on the same transaction, I don't believe that is possible. Fair, yes, best, no... thanks for your input.

PATRICIA.. - comment # 57 - .... . yes, if it's handled properly. In my example, I believe that it wasn't and as of right now, still isn't. thanks

JIM.. - comment # 58 - .... . I find that to date, the buyers don't need to find another agent, because in my opinion, you explained it to them... you disclosed it, and did this upfront. To me, that sounds honest and I have spoken to you and have read some of your blogs. I would trust you also. Thanks for the input.

BRIAN... - comment # 59 - .... . bringing lawyers into the mix can be a good thing. But I am extremely confused... your commissions are doubled to 15%? Seller is paying 15%? Sorry, but that to me is extremely high, no matter how upfront you are. 6% in most cases would be very reasonable in my opinion.

ROLLAND... - comment # 62 .... . as you stated, you disclose and educate the buyer... that is all that I am asking... and handing the buyer over to someone in your company, I don't have a problem with. It's those realtors that steer their buyers to their listings and or to their companies listings. Sure, it's okay to sell a listing of yours... but not to purposely look for other sales just because it's not your listing? I then have a problem with this. Thanks for your feedback.

Aug 13, 2009 03:05 AM

Roger Johnson

Hickory, NC

Jeff, I did not read a single comment, so forgive me if this has already been said in some fashion.

Dual agency has been brought up on Active Rain from time to time. The problem with talking about dual agency in a general sense is that...well...you CAN'T talk about it in a general sense.

Dual agency is tied to state RE laws and all states have different laws/guidelines/rules for dual agency. Some allow it, some don't. Others have different options, like a transaction broker, that tends to "replace" the dual agency situation.

Further, dual agency is classified different depending on the state. In some, dual agency applies to the AGENT in question only. In states where this is the case, NOT be a dual agency becomes an easier task.

Others however, the brokerage owns the listing and EVERY agent in that office is the "listing agent." So, if Bob gets a listing and Mary has a buyer that wants it, and they work for the same agency, they have to become dual agents (or designated agents) for the deal to work, OR the buyer has to go to another agency. If you happen to work in an office that has 30 or more agents, this would be more common than not.

Aug 14, 2009 05:45 AM

Anonymous

Mario G.

In the Thomasville, Georgia area we have very few real estate agents with ethics value.

Dec 07, 2010 02:25 PM

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