Is Dual Agency Just an Inappropriate Relationship?

Is Dual Agency Just an Inappropriate Relationship?

Ontario Real Estate Source

By Brian Madigan LL.B.

A consumer association in the United States known as “CAARE” otherwise known as “Consumer Advocacy in American Real Estate” is rather opposed to the concept of dual agency.

Among other concerns this is what they say about the National Association of Realtors and its role in dual agency relationships:

“NAR – Dual Agency is a Totally Inappropriate Agency Relationship

Hypocritically, it should be noted that the National Association of Realtors previously took the position that, “Dual agency is a totally inappropriate agency relationship for real estate brokers to create as a matter of general business practice…

The disclosures and consents necessary to make a dual agency lawful are so comprehensive and specific that a typical real estate broker cannot undertake them as a matter of routine.”

Taken from “Who is My Client– A Realtors Guide to Compliance with the Law of Agency” 1986 National Association of Realtors.”

COMMENT

Dual Agency Inappropriate

When you first come across the concept of dual agency, it seems ludicrous. It doesn’t make any sense. It appears totally inconsistent with the concept of agency.

Initially, I took that position too. And, most of my earlier articles took issue with the matter much along the lines of CAARE.

However, I began to appreciate the concept quite differently. It really isn’t true agency at all. It shouldn’t be criticized by its shortcomings as “agency”.

Technically, while there still are some agency duties, the role is quite different.

The role of the dual agent is truly that of a mediator. Sometimes, there are good results with a mediator. It should not simply be discounted in its entirety because it does not have all the elements of agency.

NAR’s position

Clearly, there was a change. They changed their view and I changed my opinion too. It’s not hypocritical. It is an informed choice. In both cases, it required some explanation, analysis and critical thought.

CAARE’s position

CAARE’s position has not changed. They were opposed to dual agency, and they are still opposed it. However, they do not appear to be open-minded, and take positions concerning the real estate industry which are quite vindictive. In large measure, their strict approach somewhat undermines the validity of many of their fundamental and good points.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com