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Right or Wrong? Dual Agency - What States Allows It or Not

REAL ESTATE AGENCY RELATIONSHIPS

How agents can represent their clients:

1) Fiduciary responsibility to a buyer

2) Fiduciary responsibility to a seller

3) Fiduciary responsibility to both the buyer and the seller

Okay, it is like walking a tightrope!

DUAL AGENCY

Is this ethical?

What is the practices in your real estate market?

Is it possible to really represent a buyer and seller well?

Are you serving your clients well?

I NEED YOUR HELP TO COMPLETE THE LIST BELOW, PLEASE GIVE ME INFORMATION ABOUT YOUR STATE'S LAWS ABOUT DUAL AGENCY!

List of states/countries - what is the practice/law:

Alabama - dual agency is not allowed

Alaska - abrogated common law agency, but dual agency is allowed

Arizona - dual agency is allowed

California - dual agency is allowed

Florida - dual agency is not allowed

Hawaii - dual agency is allowed

Kansas - dual agency is not allowed

Kentucky - dual agency is allowed

Louisiana - dual agency is allowed

Maryland - dual agency is not allowed

Massachusetts - dual agency is allowed

Minnesota - dual agency is allowed

New Jersey - dual agency is allowed

North Carolina - dual agency is allowed

Oregon - dual agency is allowed

Pennsylvania - dual agency is allowed

Rhode Island - dual agency is allowed

South Carolina - dual agency is allowed

Texas - dual agency is allowed

Virginia - dual agency (TBD)

Virginia - dual agency is allowed

Washington - dual agency is allowed

Washington DC - dual agency is allowed

Check out my other blogs on real estate practices regarding "Agency" and other related topics:

What do you do? When a buyer ask you to show your listing.

Dual Agency is Illegal and It Should not be Practiced!

Posted by Ernie Cabrera, CEO, REAL ESTATE AMERICA - REA on 11/05/2007 11:42 PM

Comments (123)

dual agency, representation, service, helpful, agency relationships, buyers, sellers, both, fiduciary, responsibility, clients, customers

This post has been included in California Information Sacramento County, CA Information Folsom, CA Information

123 Comments on Right or Wrong? Dual Agency - What States Allows It or Not

NOV

2007

There will be good debate on this one. We know both, all, sides to it. Usually we do a few dual agent deals a year. We know how, and have never had a problem. Yet. And that's the kicker for the other side of the debate.

Good question, thanks

NOV

2007

Interesting because just this evening I told a man who called about seeing a listing of mine, after I asked him if he was working with an agent, that I don't believe that dual agency represents any side well. Since I already have an agreement with my seller and he is paying me for that already, then I do not think it is in my sellers best interests to have me reduce my representation for him so that I can increase my opportunity to earn more by being a dual agent.

I told the man who called that if he was interested in the house after seeing it, then he should ask family and friends if they know a good RE agent, if not then I could give him the name of a good RE agent (no referral on this...I like real "arms length") to represent him.

Dual agency isn't legal in my state. Don't think I would touch it if it was legal. I don't see why a seller would agree to it within a listing agreement.

I think people handle these situations different ways. Personally I don't like the idea of being a dual agent. Its too messy. I will usually hand a buyer to a different agent if a buyer is interested in my listing.

Escapeso Austin Texas Real Estate

Gary, thanks for being the first to comment on this. It looks like you are okay with dual agency. In California it is allowed and I am glad you have had no problems with it. How is it in Nevada since you are on the border?

I have acted as a dual agent on several occasions, and although the paycheck was nice, I think it was more hassle then it is worth - so now if I have a buyer for a listing I refer the client to another agent and get the referral - I get a little extra at closing and can still fight for my seller.

Technically we don't have "agency" in Alaska, but I do 8-10 transactions a year where I have both the buyer and seller. I have the option, with the sellers consent, of course, to become a neutral facilitator in the transaction, which I don't do. If a buyer is interested in my listing I will (after the prerequisite hoops) show them the property and prepare an offer, if they so desire, but it's always with the understanding that I only represent the seller.

I still have to disclose everything I know about the property and I have an obligation to treat everyone involved fairly and honestly; I just can't and won't delve into their motivation, offer strategy, etc. I don't think "dual agency" works in every situation, but with the proper disclosure and conduct on behalf of the agent involved, it does work. Disclosure is certainly key. The buyers that want representation or the buyers I think need representation are given a list of agents I trust to to take good care of them. So far it's worked like a charm.

It's also illegal in my state and I never did it, but it's really hard to come up with a rational explanation for why it's okay, other than "I've never had a problem with it." Every time I've handled both sides of the transaction ("transaction brokerage" in Colorado), I've sworn I wouldn't do it again, and my relationship with both parties was strained.

I don't like the idea of dual agency. It presents too many problems. Even if a particular state permits it, my understanding is most E & O insurers will not carry an insured who engages in dual agency.

I am on the wrong side of this one for a lot of agents. I do not do Dual Agency, I do not see where it benefits the client... I have posted on this and it can be a touchy subject!

It's allowed in Kentucky but it shouldn't be.

Seller agency = doing your very best for the seller

Buyer agency = doing your very best for the buyer

Dual agency = Not doing your best for either party because you're not supposed to harm either party.

Well excuse me, but if you are doing your best for one party, you're goig to harm the other party (financially, lighten up. I don't mean you're going to clobber them over the head. (even if you feel like it sometimes)

Good luck with this dilema.

While I can see the need for Dual Agency in some small towns where agents are few and far between, it isn't necessarily the best for either clients, buyer or seller .. the Realtor has become a paper-pusher since he/she can't truly represent either.

When I have been asked to show my listings I do show it as a sellers agent and tell the prospective buyer I can't represent you here, I have an obligation and responsibility to my seller. I can give you a list of reputable Buyers agents if you would like.

In California, any agent who signs a buyer under an exclusive buyer's broker agreement and then sells her broker's listing, even if the agent representing the seller works in a different office owned by the same broker, that buyer's agent works in dual agency. My own office, for example, sells almost 50% of its listings in-house.

Deborah, I am assuming that dual agency is not allowed in Washington. Is it allowed to get a referral fee in this situation? The practice seems different in my market place in California.

I am going to edit and add to this blog a list of states and if "dual agency is allowed".

Byron, I had no idea that is was not legal to do in some states. I will post Kansas as a no dual agency state. Thank you for the info!

Ki, I understand that dual agency can be messy and it is like walking a tightrope. Does your state allow dual agency or not?

I will post your response in the main blog above. Thanks!

Donna, good point, it is harder to fight for one side or another. In fact, you are not suppose to fight for either side when you do a dual agency. You are in Southern California so dual agency is allowed, but is it practiced regularly there by other agents?

Dual agency is illegal here in Florida, so it makes it an easy decision

Hi Ernie, Yes, dual agency is allowed in Washington and so are referrals. I just don't like the idea of muddying my seller's representation with my getting a referral too, it bothers me, so it's a personal thing.

Elizabeth mentions that in California, if a property that is listed by an agent associated with a particular brokerage is purchased by a buyer whose agent is also associated with that brokerage then that is a type of dual agency, that is true in Washington too. That type of dual agency I am fine with as both the buyer and seller are each receiving their own representation.

It is interesting that some states make it illegal to practice dual agency, it just goes to show that there is an inherent conflict of interest. I would be interested in seeing which states it is illegal and which it is legal, thanks for compiling one.

I have done a couple of true dual agency transactions by representing both parties myself and I am uncomfortable with it. It makes you wonder if somebody got the short end. I prefer to be in a single agency transaction, but just as Deborah said in CA we have dual agency often because of the broker representing both sides.

Hi Ernie, to update your list, dual agency is allowed in Washington State. Thanks again for compiling it, it's very interesting.

here's a link to the Kentucky Real Estate Commission's model policy on Dual Agency for Kentucky where dual agency is allowed.

http://www.krec.ky.gov/word_files/dual_agency_model.doc

Ernie,

Dual agency is allowed in Hawaii. It's such a GRAY area though when you think about it. It doesn't just apply to 1 seller and 1 buyer and 1 agent.

What about when you're working with 2 sets of buyers for the same type of property... isn't that also dual agency... how do you represent one buyer over the other? Do you disclose to those buyers that they are not the only buyers you are working with? What if they both want to make an offer on the very same home? How can you advise them?

What if you have 2 or more listings on the same street? Is that dual agency? How can you show and sell one house and not the other? How do you please both sellers? Are they truly represented?

If we see Dual Agency as a negative thing, there is no end to the dual agency scenarios that can arise. On the other hand, we are bound by the code of ethics to treat all customers and clients fairly. As long as all parties have understood and agreed to the dual agency, in writing, then it can be a win/win situation. On the positive side, communications and paperwork is handled much more smoothly when it's "in house".

I think it's still evolving, and there will be a lot more discussion to come.

In PA disclosed dual agency is legal. Undisclosed illegal.

But personally, when a buyer calls on one of my properties, I give the call to another agent in my office.

Occasionally, I do end up on both sides.

NOV

2007

Jesse and Kathy, so there is no "agency" which mean you have no fiduciary relationship to either party? I just need a little clarification on that. Okay so you work with both, but only represent one as a client and the other as a customer. If you are doing about 8-10 transactions a year where you have both the buyer and seller, you are doing good volume. Good job!

It seems to me that it goes back to disclosure and if the buyer and seller feel comfortable with the representation being provided. Thank you for you comments. Please clarify what is Alaska's position on dual agency so I can post results on main blog. Thanks again.

Jennifer, so it is illegal to do perform dual agency in Alabama. I will record that on the blog. When there is heavy negotiating being done there is always stress involved. Best wishes on your future transactions!

Eric, I don't know how it is in other states but in California, dual agency is permitted and most of the E&O insurance carriers allow it. You do, however, need to have the proper disclosure to both the buyer and seller letting them know how they are represented. We have to pay the E&O insurance for both sides of the transaction. Thanks for your comments. I would like to find-out if other states have problems with E&O insurance coverage on dual agency.

Charles, I appreciate your position on the matter. You are welcome to post the links to your other blogs on this matter. It might open up and clarify this issue more. I have to say that most of my sellers expect me to bring a buyer and sell my listing myself. I have a long conversation about his when I take a listing. If they do not want me to represent a buyer on their listing I would comply, but that has never happened to me in 16 years in the business. By the way, is dual agency permitted or not in Virginia

Is this a matter of culture or expectation?

Erby, good comment and I appreciate your feeling about dual agency. It is a touchy subject amoung real estate professionals and clients. You seem to know a lot about agency, have you delt with this a lot as a home inspector? Do you really think an agent can not fully represent a client as a dual agent?

Gail, thank you for your comments in the long discussion on dual agency. I live and work in communities where there are thousands and thousands of agents and dual agency is done all the time.

I must ask the question; "what is the definition of representation?

Can you represent a client and not be just a paper pusher?

Can buyers and sellers be savvy enough to tell you what they want without you having to guide them too much in the transactions?

Elizabeth, I believe your real estate practice is the same as my company. My experience in Northern California is that dual agency is looked upon as a good practice not just from agents, but from buyers and sellers.

As I had stated above, my sellers expect me to find a buyer to seller their listings. I also have buyers who only want to work with listing agents and not just a buyer's agent. It must sound strange to some of you in other states where it is not allowed, but my experience is it works just fine as long as you fully disclose how dual agency works.

The negotiations are different because of dual agency. I call negotiations "the game" because if you only represent one party you play "the game" differently as if you represented both parties.

Elizabeth, what do you tell your clients when you list a home or when you work with a buyer?

Ernie,

Yes, I really think an agent can not fully represent a client as a dual agent. You can do enough to "get by" but that is only representing the best interests of your pocket book.

Can a lawyer really represent both sides of a law suit.

Face it, Home buying is a conflict (for lack of a better word) between the seller and the buyer.

The seller wants to sell for the most money and least hassle.

The buer wants the most house for the least money.

As a seller's agent, the buyer lets slip that while they are offering $200,000 their actual top limit is $225,000. What are you obligated to do? Of course you inform the seller. Your fidiuciary duty obligates you to. But doing so harms the buyer.

Reverse it as a buyer's agent when the seller slip and you find out they'll accept $25,000 less than asking price.

Now put yourself into dual agency. Doesn't matter which one slips. You are not supposed to tell the other with your do no harm pledge. Are you REALLY representing either parties best interests.

No!

Ernie~ here in NJ we practice dual agency. I do not feel comfortable doing this and unfortunately did lose a potential sale because of the buyers misunderstanding as to how it would work.

NOV

2007

The All Pro Team, thank you for your comments and the info on dual agency in Florida. I think I asked you this question about dual agency in another blog, so thank you for posting it here.

Deborah, thank you for your comments. Yes, if an associate is representing a buyer and another associate from the same brokerage is representing the seller, it is considered dual agency. The true agent is the broker (either an individual or corporation). I am looking forward to getting a list together which states allow or disallow dual agency.

Bob, I appreciate your feeling and respect your preference to not do it. I myself have had much success in representing both parties in dual agency. I have never had a problem but I spend a good amount of time telling them how it works before we go into negotiations. I think how you layout the negotiations will determine if there will be a conflict of interest or not.

My clients have always felt that I represented them well even if we did not have hard psychological negotiations. I tell them to put forth what they want in writing and I would present it to the other. If we can find a good happy meeting of the mind we have a deal or we walk away from it if it does not feel right. I encourage them to talk strait and no games. I let them know that they are the boss and I will only do what they ask me to do if it is right and fair.

Deborah, I noted your comment on Washington's position on dual agency in the main blog. Thanks for your info!

Erby, thanks again for your comments and the link. It is cool that it spells out dual agency guidelines for your state.

Lisa, I noted the info about dual agency being allowed in NJ. It is too bad that you had a problem with your deal regarding dual agency.

What do you tell your clients, both the buyer and seller about the agency relationship?

Do you use a form provided by your board of REALTORS?

A Buyer has the right to be a customer.
A Buyer cannot be coerced into an agency agreement.

If a Buyer wished the listing agency or its licensee to prepare an offer, the listing agency has a fiduciary duty to its client Seller to prepare the offer as instructed by a Buyer customer.

Larry, you are correct on the matter that a buyer can choose to be a customer and not be represented by an agent. So, to spell it out, an agent has these responsibility:

Client = Fiduciary Responsibility

Customer = No Fiduciary Responsibility, but to be treated honestly and fairly

NOV

2007

Hi, Ernie
The legislature abrogated common law agency in 2006 so strictly speaking, we don't have an agency relationship with buyers or sellers... unless the licensee specifically takes on those fiduciary responsibilities. Instead we have;

a) Specific Assistance; duties include "exercise of reasonable skill and care, deal honestly and fairly, present all written communications in a timely manner, disclose all material information regarding the physical condition of the property and account for all money and property received"

b) Representation; includes duties owed... as listed above, not knowingly do anything that is adverse or detrimental to your (clients) interest, disclose all conflicts of interest, advice client to seek expert advice for issues outside our area of expertise, maintain confidential information and "make a good faith and continuous effort to accomplish your real estate goals."

Too often the example of an attorney representing both the defendant and the plaintiff is used to argue against "dual agency" but in reality a real estate transaction isn't necessarily that adversarial. The seller is asking X... the buyer offers X... the negotiations are between the buyer and seller. Anything that a buyer (or seller) purposefully or accidentally disclosed to the agent while he or she was working as a dual agent can't legally be disclosed to the other party.

In Erby's example above, it wouldn't matter if a buyer said that while they were offering 200K, their true ceiling was 225K. If you were representing just the seller and another agent had the buyer, the seller would never have that information anyway. Alternately, if a seller were to say (in the confines of a dual agency situation) that while they were asking 225K, they would go to 200K if necessary... that's information a buyer would never have access to.

I am against and will do not Dual Agency. It is allowed in Washington DC and Virginia, but not Maryland. I have done Single Agency (representing the Seller) and treated the Buyer as a CUSTOMER. But I make it very clear (and of course we have plenty of written disclosures) that I will not represent the Buyer too!

I know some agents love to argue this point. My point is; while I personally think I could be fair and impartial to both parties - I get most of my repeat business from referral. The last thing I want is for any past client to even have a hint or passing thought that I did not represent their very best interest. It is more likely these thoughts will enter their head if I am representing both sides.

If you needed a defence lawyer - would you hire the prosecutor?

James what a great analogy. Defense is spelled wrong though.

NOV

2007

Jesse & Kathy, James, and Bob, thank you all for commenting on this blog. There is a lot of difference of opinion on this issue and we have to remember that it is something not to be taken lightly. We also need to consider what is allowed in each state. I have been in the business for some time now and I had not really know that there is so much difference of opinion on this and that each state has different laws regarding client representation.

Check out California's Agency Relationship Disclosure:

http://www.sanjoseproperty.com/includes/article_agency.html

Here are some highlights from the disclosure I give from the California Association of REALTORS form:

When you enter into a discussion with a real estate agent regarding a real estate transaction, you should understand from the outset what type of agency relationship or representation you wish to have with the agent in the transaction.

The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.

Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.

This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive of the Civil Code set forth in the next section.

Read it carefully.

We have to remember that the clients make all of the decisions. I tell my clients that they are the boss and I just help them understand how things work and to provide information needed.

Yes the client makes all of the decisions but as home buyers or home sellers they rely on the real estate agent to provide them all the guidance and negotiating skill of that agent's expertise. How can you give them your best advice, in dual agency, if that advice will harm the other party. You can't, can you?

The buyer or seller is relying upon YOU to provide the full breadth and scope of your knowledge and experience, but you can't legally provide it in dual agency.

I was wondering why Alaska would abrogate the common law of agency. Now I know.

For some interesting reading that applies to the history of the law of agency and NAR, read this link.

View From The Top: The Big Grab
by Tom Hathaway

The banks are going to win the "big grab." Instead, it should be called the "big pinch." The NAR knows that what they have done is open the door by throwing out agency, and their members are going to likely have their pockets pinched. When that happens,..

While a little aged, it is interesting reading on what NAR has done to you.

Erby, I read the link you provided and it was very interesting to read it. The information and comments by all of the great people on AR has been very enlightening. I need to put some thought in answering your questions. I will come on later to post it.

NOV

2007

In dual agency you can not tell the other party the bottom line price or information about the other parties motivation unless expressly authorized by that party. In everything else you are suppose to provide:

A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either Seller or the Buyer.

1) We still can provide a buyer a competitive market analysis to show what other properties are selling for.

2) We still can provide the buyer an opportunity to do a whole house inspection to check the condition of property.

3) All disclosures still need to be given to both parties.

4) All material facts still need to be disclosed.

5) As an agent you still have to do visual inspection of property and disclose any know defects.

6) You can still provide all the benefits of the property to the buyer in order to show property's value.

7) You can still provide all the information on how things work in real estate so you can educate your clients to make the decisions that they need to make.

Here is a question:

Can you still provide good service and representation for both parties? A Win/Win?

NOV

2007

Hi Ernie, In my heart I would always have some feelings of guilt, was I really impartial? Did I really do my best to both parties, did I abandon my first client, the sellers to make more money? I often wonder with most everything about doing my best, and I think that handling a dual agency situation would cause some stirrings of guilt ---- for me that make it not worth it.

Thanks for the calm, well moderated discussion on this topic Ernie, very illuminating!

Oh, BTW Ernie, the way you handled this discussion really shows me that you can indeed handle a dual agency situation well, taking into consideration both parties/sides needs etc.

Yes Ernie, you can provide "good" (aka OK) service and representation for both parties.

But, you can't provide "best" service. It just ain't possible to serve two masters with the very best of your knowledge, skill, experience, and advice when the two masters are against each other.

You can make it (the deal) happen, but you can't "do your best" for either party.

And, I'd like to join Deborah in congratulating you on how well you have moderated the discussion of what can be a heated topic.

The level of understanding amonst licensees in general about agency law is astoundingly poor.

A client's agency relationship is with the Agency or Broker(age), however the top level license reads in your jurisdiction. If you have any doubt about this just read your Listing Agreement and your Buyer Agency Agreements. These agency agreements are between the client and the Agency / Broker(age). A sales person / sales associate is only authorized by the Agency or Broker(age) to bind the Agency or Broker(age).

In any Agency/Brokerage where one sales licensee executes a listing agreement with the seller of 123 Anystreet and another sales licensee of the same Agency/Broker(age) executes a buyer agency agreement with a buyer of 123 Anystreet, that is dual agency. In this scenario the Seller and the Buyer do not have the benefit of undivided loyalty that is a fundamental part of agency.

NOV

2007

Deborah, I really do appreciate your heart felt tough on this matter. I would never want anyone to go against their conscience on any matter. I think if we have integrity and true desire to help people, we would not do any deal that would cause us to feel like we are compromising our beliefs. Money or the deal is not worth it.

If I could not perform my duties and responsibilities for my clients as follows:

"A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either Seller or the Buyer."

I would walk away from the deal without a question myself. Our integrity and having a clear conscience is more important.

Deborah, that was the best compliment I have received here in AR. Thank you!

Erby, great question and comment! I want to respond, but I should take some time to formulate a response when I am not so tired.

Larry, I love your comments too! I will try to respond by tomorrow! It has been a very long day for me. Thank you and good night!

Ernie,

I am going to bookmark this so I can get back to it tomorrow. My state actually has dual agency right now. In May the laws will change and we will have transactional agency. I am trying to find out as much as possible.

NOV

2007

Hi Ernie, You are Welcome! Well deserved!

In Louisiana, dual agency is allowed with full disclosure and acceptance by both sides. I've been dual agent for a number of transactions and, in most cases, everyone involved was extremely pleased with the ease and result of the transaction. The only situation which has been troublesome is when representing both a builder and a client in a new custom home. Builders, having been through the process many times, in my opinion have an advantage. For that reason, I've decided to represent only the client on a custom home.

Ernie, in Texas we have dual agency. I think it is ethical. I don't think you would pursue it, just let it happen if you represent both sides, and both sides need to be aware of it and have it explained to them.The highest level of rights of each party (undivided) would be with separate agency.

In Massachusetts we have Dual Agency as long as both parties give informed written consent. When you think about it, Dual Agency is not difficult, it is not brain surgery.

Basically, I explain it as a mother with two children, she loves them both and treats them equally. Keep both parties information confidential, give equal information (comps, market conditions, etc.) to both parties, and you will be fine!

It seems to me that practicing Dual Agency is a personal decision based on allocation of risk and the amount of liability an individual agent is comfortable assuming (in states where it is legal). I, for one, do not practice dual agency, although it is allowed in Washington as stated above. Why? Quite simply; it doesn't feel good to me. And, if I'm uncomfortable with it, certainly my clients are also uncomfortable with it because they pick up on my vibes. I'm also just not willing to assume that amount of risk. I run a clean business (or do my best - we can't always be perfect all of the time) and feel that I have enough risk just being in the business so, for me, personally, I just won't take on the additional burden. Further, I do feel that, as mentioned above, it is inherrently contradictory to practice dual agency in accordance with our duties to our buyers and sellers. Yes, yes, I know that it is "legally" allowed and I know I am not an attorney, but I guess you could say that I just simply don't understand how you can go from an advocate to a negotiator in reality. I, for one, can't....In the end, where it's legal, it's a personal choice.

Thanks so much for the post - I really like learning how others feel about dual agency.

Emily Cross, Bellingham, WA

NOV

2007

Erby, I want to thank you for bring great points and ideas to this discussion! I totally respect your position and I am not really trying to change your mind. I think iron sharpens iron and the discussion has been very enlightening for me. This topic is more heated then I had previously thought, but this group of people so far has brought out great points of view to consider. And Erby, I really appreciate your complement too! It is much appreciated, but I must say that you all need to be given the credit for the content of information you are bringing to this discussion.

I just want to remind people we all have to consider the rules and laws that we have to follow in our own states and markets. So we must understand we will all not agree or come to the same conclusion for many reasons. But it is a good mind stimulating conversation that I am enjoying greatly.

Now, I want to just comment on the "best" service to your client. I think the "best" service depends on what the clients needs are. I will concede the point that it is hard to serve two Masters, but you can if they are both agreeing together on what they want you to do. Now my point is this, if they both want the deal, and if they are willing to find a mutually acceptable price and terms, then your job is to just facilitate the deal. I have seen so many agents get in the way of the client and take over the decision making when we are just agents. I do not make the decision at all. I tell them that upfront. Many of my clients want me to make decisions for them, but I would be over stepping what an agent does, if I did that. My job is to bring the best information, guidance, and counsel in closing their transaction.

I would say if the goal is to "steal the deal" or "get over" or "take advantage" of the other party, then I would agree that you can't serve two masters.

Let me end with these question you have to ask your clients and yourself:

What is the goals of your clients?

What is your roll in this situation?

Can you help both or should you advise them to walk away from it?

Erby, just my toughs, but maybe I left you more questions then answer.

I will try to answer the other comments soon! My business has really been picking up and I have had to spend more time on it these past few days. I just pulled a 14 hour day working. Thanks for your patience!

Ernie,

You're welcome. It was earned.

I'm just a home inspector without a stake in the game, but a point of view.

It is really up to the client. I see two types of clients.

Some of them, buyers and sellers alike are experienced, know what they are doing, and only need a facilitator. Dual agency is appropriate.

MOST however haven't a clue of all the fine details that go into making a real estate transaction happen. (I guess that's why they are always complaining about how much you (we) charge).

Those people need ALL the guidance you can provide based on your experience and wisdom. Those people don't want you too make the decision, they want you to tell them, based on all your experience, education, and wisdom, what decision they should make. You are an advisor, not a decision maker.

That's why corporate CEO's have all those advisors. That's why you hire a lawyer to guide you thru the legal process. That's why you hire a mechanic. Tha's why you hire a doctor. That's why you hire a realtor.

Guide me. Advise me.

Those types of buyers need CAVEAT EMPTOR but get advise from a professional in the field. A professional who can FULLY advise and guide with nothing but their best interests at heart.

You ever notice that when you get interested in something like this, or you just want to take some time off, business picks up and wham, off you go.

Jeff Sorg

www.OnlineEd.com

Oregon permits disclosed and consented to dual agency, but only when agreed to before a dual agency is created, either intentional or accidental. Brokers in Oregon are also required to present each customer (a prospect with which no agency relationship is created or intended) with an Agency Pamphlet that is written by the state of Oregon and informs the public as to what types of agency relationships are permitted, along with the benefits and dangers of each. This pamphlet also makes it clear that the prospect is free to work with a broker of their choosing.

As to the question, "Is it ethical?" that would best be answered by the client before a dual agency relationship is created. Certainly, your client will let you know if it is ethical! And, isn't that what ethics comes down to? Isn't all about what is perceived to be fair and right?

Undisclosed dual agency is illegal in Oregon, which certainly makes it unethical. Disclosed and consented to dual agency, because it is legal and permitted by the clients after a discussion about agency relationships would seem to be acceptable and ethical.

To view the referenced forms in PDF:

Oregon Disclosure Pamphlet

Disclosed Limited Agency Agreement for Sellers

Disclosed Limited Agency Agreement for Buyers

I'm curious, in states where dual agency is not allowed...what happens if a buyer walks into your open house, you have the listing, and wants to write an offer? Must you refer them to another broker, who would then represent that buyer? Could the listing broker ask that agent to pay a referral fee? It seems this process adds even more fuel to the fire.

I also saw above that others in CA had mentioned that if two agents who work for the same broker, with seperate clients, that is also dual agency, which is correct. That requires full disclosure just as if it was one agent representing both parties. But in terms of fiduciary, when I bring an offer to another brokers listing, not only do I have my buyer sign an agency disclsoure prior to writing the offer, I also must send one to the seller to sign prior to presenting the offer. Complicated to say the least! In fact I just read through this information on the CA Dept. of Real Estate site, and am now going to take a nap! Seriously though, good stuff and at the end of the day we must put ourselves in position to best represent our clients interests.

wow Ernie, you've got a good thread going here.

Just wanted to chime in to respond to Jason above.... here in Hawaii, in the listing agreement form, there is a place for seller to agree to dual agency right up front, in the event that the brokerage brings the buyer. then you don't have to bring it up later when/if it arises. Of course, they can choose to NOT agree to dual agency if they so desire.

I have a Team. I ask one of my team members to show it. Also for open houses. I have dualed a number of properties in the last year. Yes they are difficult. They are also nice at settlement! :)

Ernie...It all depends on......................

Does your state allow it
Do your sellers agree to it, and
How you feel about it.

Virginia allows it, some of my sellers have no problems with, I prefer not to do it.

The reason I prefer not to do it, although I have been a dual agent in the past, is because even if the transaction starts out smoothly you never know when you may hit a bump in the road and that bump can become a mountain.

Thanks for the topic...great one.

Cheers, Kathleen

NOV

2007

Hello everyone, this seems to be a great discussion with lots of great points to consider. I believe you can do dual agency well, if it is done correctly.

I have to tell you all that I have been very excited to read and think about all that you are commenting on. It really has been very stimulating for me and I hope for you. I have been very busy this last week with business (new transactions) picking up with my company and bring on so many new agents. I appreciate your patience with me getting back to your comments. I will try to answer your comments in the order they have come in. I welcome some of you to help answer or respond to comments that you feel you can comment on. I am sure we have others here who can help moderate this discussion. I hope to get all 50 states stance on "Dual Agency" and other countries too.

I feel I need to join the Active Rain Addicts group because I find myself reading your comments on my cell phone in between appointments. It is just too time consuming to try to respond from the cell phone so I have to wait till I get home on my computer.

Larry, I agree that many agents are not aware of how agency works. I do sales meetings and classes with my company that goes over these subjects. I have had other associates come from other companies who had not been properly trained on agency and how it works.

In California, the agent is technically the broker like you said. The broker could be an individual or a corporation (no LLC or LLP is allowed in California) licensed by the California Department of Corporation. A real estate agent (aka: associate or licensee) has to work under a broker. An associate can initiate the services of the broker or brokerage to a client (buyer or seller) with a contract. The client technically is doing business with the broker or brokerage.

When you have any two associates working for a broker or brokerage doing business with clients on the same transaction and has an agency relationship is considered dual agency unless defined in writing differently. We in California need to disclose agency relationship before or when we write offers or take listings (sellers or buyers or property). There is also a confirmation of agency in writing to disclose how an agent or agents are represent clients.

I think it is important and imperative that agents handle this correctly. I believe more education is needed in the industry. As it is now, the broker or brokerage is responsible to educate associates to the correct practice.

NOV

2007

Jesse & Kathy, could you please give us more information on how abrogated common law agency works. What is the difference because it is still unclear to me.

Maybe some of you who are in states that have an abrogated common law agency or states that do not allow dual agency to explain how the system works in your states.

I will continue to work through the comments, but this is something that came to mind as I was reading Jesse & Kathy's original post.

Karen, I am looking forward to learning more about what transactional agency is all about. Do you personally practice dual agency right now? I appreciate you reading and commenting on my blog!

Deborah, thanks again!

Dual Agency is allowed in South Carolina

Don, I appreciate you giving us the information for Louisiana. It is good to know you have had success in your practice. It is good that you look out for both sides and that you follow your convictions in your business dealings. There is more of an advantage when you have one side who has more experience then the other. I do believe we can educate them on how it works, but we are not allowed to go beyond the point where we give info on price, terms, and motivations of the other party without permission. In a dual agency we have to help them find a win win.

Gary, I agree with you that the highest level of service you can provide is with separate agency. It is possible to provide great service in Dual Agency, but it all depends from situation to situation and client to client. Every situation is different because each client's needs are different and each clients experience and knowledge is different. We have an obligation to do our best! Thanks for your comments!

Rick, thank you for the information on Massachusetts being a Dual Agency state. I agree that Dual Agency is not brain surgery, but it can be tricky if you are not careful. I do like your illustration about the mother with two children! I think it was real good! It seems you have the right attitude and integrity to be able to do dual agency. Thanks again!

NOV

2007

Emily, as I had stated in previous comment, I appreciate your conviction and point of view. I think we have to be lead by a higher level of our own personal integrity in order to serve our clients well. I do agree with you and you bring up a great point about the liability. There is much liability when you perform Dual Agency because if done wrong or performed badly, there could be consequences with claims of unfair treatment or improper practice. We have to evaluate ourselves and have to feel good about what we do. Thanks for your conviction and passion for excellence in this business! It has been good to hear people's convictions and practices, everyone keep it coming!

Great post! It is so nice to see how many people do not agree with dual agency. And I never thought of getting a referral fee as also dirting the water but it makes sense....I've just always been happy to give it away! Our situation is the same as Elizabeth's too...if it's the same broker it's dual agency even if they were represented by different agents from the beginning...and we do sell most of our own listings but we also hold the majority share of the listings in our area so it's not a surprise.

I've always felt I was here to provide a service to my client and I can't do that fully as a dual agent.

Ernie, looks like you opened up a good discussion here. We do duel agency in our area. If we sell in-house that is the most common form of duel agency. I have done a duel agency double-end. I don't like to do them unless both parties agree and there is some special reason that I would need to.

I refer it to my partner, and she gives me a 25% referral fee. That way we all feel comfortable that there is an agent in each corner.

When I have done them, I feel that you are a disadvantage on both sides of representing the client. There are certain things you cannot tell on either side and how can that come out in either parties favor. We are here to provide strategy and knowledge to the client so that can make the best possible decision. You cannot do that with your mouth taped shut.

Erby, I think you should go into law because you have a good logical mind. :)

Okay, I agree with your statement that some buyers and sellers who are "experienced" can handle themself and just need a facilitator. But I have to say that it is just one part of the whole package we provide as an agent. There is so much more an agent provides a buyer and seller than just facilitate or negotiate. Agents who work well for their clients deserve their commission and even more in this market. We wear many hats and need many different skills, but ultimately we need to get the job done that our clients want us to help them accomplish.

I also agree with your statement, "You are an adviser, not a decision maker." I know clients want us to make decisions for them, but it is not our place as agents. Regarding clients needs, "guide me, advise me" we still need to and we should, just not telling what the price, terms, and motives, unless authorized to, and sometimes we are told to tell. Some times price is not the most important thing to a buyer or seller, some times terms, speed, and finding a win-win is more important. There are many different situations and we need to be careful how we handle each situation.

There is no one way to deal with clients in these situations except "A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either Seller or the Buyer."

Caveat Emptor = "let the buyer beware." (Latin)

The buyer should examine the goods and/or property and buy it at his own risk, except for latent defects. In California we practice "Full Disclosure" even in "Dual Agency". We still have to disclose any material defects or material facts know or discovered during a transaction. Seller's who hide know defects from buyer can be subject to legal suites. We can not hide known defects or facts even if the seller tells us not to disclose, we have an obligation to honest business practices. We can not hide behind "Caveat Emptor".

I will make this statement again, "I will not do dual agency when I can not have integrity and clear conscience!"

Erby, I hate the fact that I always get busy when I am enjoying the discussion!

Jeff, I agree with your statements fully! I think the point that you made who determines if "Dual Agency" is ethical or not is the client. They have to choose if they are willing to have that kind of representation. I like the disclosures and pamphlets that are given to consumers. I like the pros and cons being stated and disclosed to the consumer. I appreciate you providing the links to the disclosures and pamphlets, it is helpful.

You like, Erby, have provided good information that has been helpful and enlightening! You have the education and you provide this kind of training. You should help us moderate this conversation.

NOV

2007

Ernie,
the Broker's primary responsibility is to have a wriiten office policy and procedure manual on agency and how it will be handled in the Brokerage, second, educate the salespeople, and then monitor and enforce the policy.

In my humble but righteous opinion, if a Broker fails to do these things, then his or her license to hire salespeople should be suspended.

NOV

2007

I won't do dual agency here in VA (unless I decide to buy a house from myself), but I'll be happy to do designated rep! Dual agency IMHO is wrong, all wrong! There's a reason it's illegal in a number of states!

Ernie, I think I would have preferred a post by you stating why you do and like dual agency transactions. I dug it out of the comments but I still would have liked to see it up front.

That said, I believe dual agency needs to be done in this business. I sell businesses and very seldom cooperate. It just isn't in anybody's best interest (neither buuyer or seller).

I think a lot of these agents railing against dual agency practice it all the time. If they sell a listing inside their big corporate real estate office, they are probably involved in a dual agency transaction.

Bill Roberts

NOV

2007

I want to apologize to everyone watching this blog. I am getting behind responding to everyone's post. I will try to catch up. You all have put out good thoughts that takes time for me to process. I will use my age to try to get an excuse for lagging, but I know it will not work. LOL

So, keep posting comments and I will try to keep up. :o)

Jason, in California, you are allowed to give and receive referral fees. And yes, it is dual agency when two associates working for the same brokerage who represents two or more different clients on the same transaction. It is good practice to give Agency Disclosure Statement to all parties involved immediately. Thanks for commenting.

Georgina, I think the practice is very similar between California and Hawaii. We have more Fee Simple transactions vs. Lease Hold. Thanks for commenting and I invite you to help me moderate this discussion. :)

Donald, thank you for commenting and letting us know that dual agency is allowed in Pennsylvania. I am sure the money is good, it must be double the regular amount in most cases. They call a transaction here in California where you do a dual agency, a "double ender" because you do both sides of the transaction. I have heard that in some states they call it a "double bubble". Thanks for your comments!

NOV

2007

Wow, this is a very long discussion. It is a lot to take in and learn. I am going to buy a home soon and I found this on the Internet. The discussion has made realize that I will need to understand more about how I should be represented. I thank you sir for the information.

There is a lot to read on this one. It looks like there is much to discuss and a lot of things to consider. In California dual agency is allowed.

Kathleen, I appreciate your thoughts on this matter. It is good to know that Virginia allows it, I think one of your fellow agents has commented on that too. I totally respect your position of not doing dual agency even if it is allowed there. It is a tightrope and you really have to becareful how you do it, as to not get yourself nor your clients into legal trouble. I agree with you on the points you put out there as questions:

It all depends on......................

Does your state allow it
Do your sellers agree to it, and
How you feel about it.

Thanks again for taking the time to comment here.

NOV

2007

In Hawaii Dual Agency is hard to avoid. If the buyers and sellers agents are with the same company it is a dual agency. We do not have designated agency here. Hopefully our legislature will change that.

Dual agency is okay in my opinion so long as each has their own agent. At best, you are a mediator, not an advocate when representing the buyer and seller.

I have done many dual transactions over the years. In fact, it's what I prefer. I don't toe the line between seller and buyer. The only difference to me is, I don't tell my buyer how low the seller can go or, how high my buyer can go. I have everything documented including conversations between all parties.

I have ful control over the transactiona and make sure nothing is left out. I have been in the business for about 8 years and I have never had a lawsuit or threat of a lawsuit. so far.

I don't believe anyone can truly perform dual agency. It is a disservice to both parties.

Matthew, thanks for your input and your thoughts. It has been good to see people's persective on this subject. Take care!

Sheri, I have posted the information about South Carolina allowing dual agency. I appreciate it very much and we are half way in getting the statistics on which states allows it or not.

Krista, thank you for your comments and for putting your input into this discussion. Dual agency happens a lot for my company, too. It is because we have many agents with listings and many agents with buyers, so, it is common to see them write offers on the properties we have listed. We have to give disclosures and the options as to dual agency. Thanks again!

Jeanean, your information has been helpful in showing how your brokerage handles the situation with dual agency and how you personally deal with it. Thank you for that. It is challenging to make sure you take care of your clients especially when we are used to "playing the game" of negotiating the best deal for them. I will be putting out a blog on "playing the game" shortly. Thanks again for your input!

Larry, great input and great point. A brokerage needs to have an office policy to begin with to make sure the correct practices are documented. And the brokerage needs to make sure sufficient training and supervision is given. In most states if a broker does not properly train and supervise associates, the brokerage could lose license or get some sort of penalty. Good input.

NOV

2007

Natalie, your positron is duly noted and appreciated. You need to do business with a clear conscience. Would you expand on how the process of "Designated Rep" to us further. I think I understand it, but how do you practice that there?

DEC

2007

Ernie, forgive me. I have to jump in here, again.

to those who don't do dual agency, haven't you ever had a seller who thought you were the best broker to put the transaction together with the buyer? If your client wanted, asked, or insisted that you perform the dual agency, would you do it or would you terminate the listing?

Jeff,

Your post is precisely why you (speaking generally here) shouldn't do the dual agency in your situtation.

Your representing the seller and doing "what the seller wants".

Explain how this would serve the best interests of the buyer???

If both insist (and fully understand the implications), you just make it happen.

Erby

The licensee would only be working in the best interest of the seller only until the dual agency is created. Before the dual agency, the best interests of the buyer are irrelevant. After it is created, both the seller and buyer are in limited agency representation situations.

DEC

2007

DEC

2007

As you stated, disclosed Dual Agency is allowed in Louisiana...but I believe that it can get you into some tricky situations!

Boy, this is obviously a hot button issue. As a member of the Hawaii Association of Realtors Legislative Committee we tried to get some clarification on this issue a couple of years ago and really opened up a box of goblins, witches ghosts and all sorts of stuff like that. The problem with Dual Agency is that it needs some definition. There are situations wherein a single realtor is handling both the buyers agent responsibility and the sellers agent responsibility. Clearly this is different than two agents from the same office but working with the same Broker handling the same situation. I guess as a profession we need to get some clarity on the terms we use. Jerry

DEC

2007

You are all doing a great job putting out your thoughts on this subject! Please continue! I would still like to get all of the states documented, so please give info, if you have the information on State's position on Dual Agency!

Your list above is kinda hard to read.

Here it is in alphabetical order.

Alabama - dual agency is not allowed

Alaska - abrogated common law agency, but dual agency is allowed

Arizona - dual agency is allowed

California - dual agency is allowed

Florida - dual agency is not allowed

Hawaii - dual agency is allowed

Kansas - dual agency is not allowed

Kentucky - dual agency is allowed

Louisiana - dual agency is allowed

Maryland - dual agency is not allowed

Massachusetts - dual agency is allowed

Minnesota - dual agency is allowed

New Jersey - dual agency is allowed

North Carolina - dual agency is allowed

Oregon - dual agency is allowed

Pennsylvania - dual agency is allowed

Rhode Island - dual agency is allowed

South Carolina - dual agency is allowed

Texas - dual agency is allowed

Virginia - dual agency (TBD)

Virginia - dual agency is allowed

Washington - dual agency is allowed

Washington DC - dual agency is allowed

Good luck gathering the rest of them.

DEC

2007

Erby, thank you for putting it in alphabetical order. I was listing the states in the order I got the info. I will use your list as we get more states. You are a good man!

DEC

2007

Erby,

I have made the change now so it will be easier for people to check states. Thanks again for putting them in Alpabetical order!

Here is my old list to record how it used to look.

List of states/countries - what is the practice/law:

1) California - dual agency is allowed

2) Washington - dual agency is allowed

3) Kansas - dual agency is not allowed

4) Texas - dual agency is allowed

5) Alaska - abrogated common law agency, but dual agency is allowed

6) Alabama - dual agency is not allowed

7) Virginia - dual agency (TBD)

8) Kentucky - dual agency is allowed

9) Florida - dual agency is not allowed

10) Hawaii - dual agency is allowed

11) New Jersey - dual agency is allowed

12) Washington DC - dual agency is allowed

13) Virginia - dual agency is allowed

14) Maryland - dual agency is not allowed

15) Rhode Island - dual agency is allowed

16) Louisiana - dual agency is allowed

17) Massachusetts - dual agency is allowed

18) Oregon - dual agency is allowed

19) Minnesota - dual agency is allowed

20) North Carolina - dual agency is allowed

21) Arizona - dual agency is allowed

22) Pennsylvania - dual agency is allowed

23) South Carolina - dual agency is allowed

I cannot believe what I am reading? WHY could you not represent both sides honestly & fairly????? I do it all the time. I sell about 25% of my own listings. I made $148,000 this year in commissions. Would I have given up thousands??? So a buyer could go ask some random agent to represent them? And potentially get stuck with someone who knows a fraction of what I know??? You have got to be kidding ! Dual agency is no different than any other part of the job. I am mystified by you people !

FEB

2008

Dual Agency is like having the same Attorney representing both sides in a court room.

Those Agents who defend Dual Agency are only thinking about the money they are making and are not thinking about the 100% Guidance they should be giving to their client. The only way Dual Agency may work is with experienced investors who do not need Full guidance in purchasing a home. Buyer's should work with Exclusive Buyer's Agents and Seller's Should be working with Exclusive Seller's Agents.

You can not give a 100% loyalty to both parties at the same time! It should be not be allowed anywhere! The consumer is taken advantage of more times that not. When it is explained to them as Disclosed Dual Agency...they still have no clue...unless you really explain that you can not represent them 100% like you could if you where only representing them alone.

Sam...let's admit it....you are doing it for the money only! That is sad.

FEB

2008

I love the analogy that Moriah makes! It is indeed the same as the same attorney representing both sides in a courtroom, unless the dual agency arises with two agents from the same office representing independently the buyer and seller, which is also defined as Dual Agency. While I find the first situation abhorrent, it would seem to me that two agents from the same office would have no more reason to collude on the sale than two friends working in different real estate offices. We need better definition of the term. Jerry

We don't technically have Dual Agency in Alaska any more.

In fact your options are:

A.) Specific Assistance WITHOUT representation

B.) Represent seller (may assist buyer)

C.) Represent Buyer (may assist seller)

D.) Neutral Licensee (in which you do not represent either party) WHICH ALSO REQUIRES the buyer AND seller to sign a WAIVER OF RIGHT TO BE REPRESENTED.

And that's what happens when you don't read all 105 comments before you LOL Jesse already answered it :-)

Kai wrote "unless the dual agency arises with two agents from the same office representing independently the buyer and seller, which is also defined as Dual Agency"

This is called designated agency in the state of Kansas. The broker takes a position as a transaction broker and a licensee represents the buyer as a designated buyers agent and a second agent represents the seller as a designated sellers agent. The managing broker cannot represent as a designated agent in this situation.

I also like Moriahs analogy.

Actually Byron, that is what we tried to get into the Hawaii State Code. If at first we don't succeed, try try again, but now I am no longer on the Legislative Committee for HAR, I will leave that to the able hands of others. Jerry

FEB

2008

Illinois is a designated agency state. That means that 2 agents from the same office can be in the same transaction without being a dual agent. One agent is the designated agent of the seller and the other can be the designated agent of the buyer. Illinois allows dual agency but it must be disclosed to both sides in writing. Either side can decline dual agency. The sellers designated agent is named in the listing agreement. Dual Agency is covered in the listing agreement and the seller can say yes or no to dual agency at that time.

Idaho allows it

FEB

2008

Real Estate In Illinois, Dual Agency allowed, However no matter what an Agent tells you about their ability to conduct a fair and unbiased form of Dual Agency, consider that the only interests getting satified is that of the Agent. Quite difficult to consider both buyer and seller when considering the Agent will not close the deal or lose the listing.

MAR

2008

In Arkansas, dual agency is legal but it must be revealed in writing. I see no problem with it.

Great research.... I did not know that all states did not allow dual agency ! I am in Oregon and assumed it was probably the norm....Oops !

JUL

2008

Great post! Please contribute to my post on dual agency here http://www.activerain.com/blogsview/579085/The-True-Test-of

Christina

JAN

My husband and I feel like we were not treated fairly by a dual agency. We just bought a house in Hammond, LA by a dual agent. I was wondering if anyone could help me with regards to figuring out if we were treated unfairly or if we were just ignorant and got the raw end of the deal.

We were told that the three hanging swings outside would stay as they were permenantly affixed to the house...that there was no need to mention them in the negotiations. We didn't get the swings. The owner took them saying we didn't offer anything for them.

Most importantly, we were pushed to close sooner even though, in order for the prior owner to sell the house, he had to install a new septic system to make it current with regulations (he was grandfathered into the old one). We were told that if we went ahead and closed, he would put the money in escrow for us and we could go ahead and move in. The kicker of it was, we couldn't transfer electric to our names until the new septic was installed, but according to our agent, it wasn't going to be an issue because the prior owner would keep electricity in his name until that happened. Unfortunately 3 weeks later, it hasn't stopped raining and the septic still has not been able to be installed. The prior owner cut off the electricity on 12/23. We are going on two weeks now with no electricity and no hope of installation any time soon.

Is all this, our stupidity or do we have a reasonable complaint here?

Thanks for any help or advice you can give me.

Linda

Hello Linda!

WOW I am sorry you are going through this. This is exactly why I advise everyone I know to get a Buyer Agent. Having the same Real Estate Agent on both sides of the transaction is like having the same attorney in a court room.

Anything that is NOT in writing is NOT a "deal". I learned this the hard way..that is for sure....cuz, I had to pay for it and learned to never do it again. That is the way it goes...your real estate agent should have put everything in writing or at the very least gave you some kind of reimbursement since they assured you that the swings would be there at pre-settlement walk through.

I do not understand why you can not get electricity in your name??? The electricity has to do with the home, right? not the installation of the sewer?

Yeah, if something is bothering you...you should voice your concern...the weather in this time of the year is very difficult when trying to do something like install a sewer...but, you should not be without Electric???

Linda,

The swings seem like kind of a small potato deal given your electric situation.

This is REALLY NOT the place to get advice. This is more of an education session for those in the real estate field. You can get opinions from a wide variety of real estate people all over the United States but it doesn't hold water in Louisiana.

The only person who can BEST advise you is a local attorney familiar with real estate law.

Spend a couple of hundred bucks and get REAL advice from a local attorney, familiar with real estate law, in your area.

Good luck. I hope you get some electricity soon.

APR

Earnie, Yes, dual agency is legal in Washington, but I strongly believe there is a huge conflict of interest when an agent tells his selling client, "I promise to get you the highest possible price," while also telling his buying client, "I promise to get you the lowest possible price."

Imagine what a listing agent does for a seller. He or she has worked with a seller for six months to one year to list and market a property, with many many hours of paperwork, planning, writing ads, posting listings, meeting with the seller many times and having phone calls weekly, emailing and talking with prospective buyers, spending numerous hours behind the scenes, encouraging the seller and building an emotional bond, and who has committed his or her best efforts to get the highest possible price from any buyer who does show up.

Now imagine a buyer who drops into town and who calls that listing agent to drive around and look at homes for one afternoon. How can we honestly suggest the agent can fairly represent both the buyer and seller without bias?

I did a very short video on this at: Dual Agency Wrong

APR

Hello all, I am having a hard time getting an answer to this question. I asked our broker to explain it and so far she has refused. I found this forum and decided to ask if anyone can tell me the answer.

Here goes: In Pennsylvania if agent for seller and subagent for seller both work for the same broker is it considered dual agency?

SEP

Hey, Sam Parker

Company Parker & Wells,

I can see where you're coming from. Dual Agency should not be allowed in the heads of Real Estate Agent looking at the profit margin only. This is the type of agent's builders and consumers should stay away from and when they do not have a photo or a completed profile they most have something to hide. Maybe it is the guilt of a dual agent that is keeping you from showing your face and a completed profile. Remember that the truth will set you free.

NOV

Hi Ernie, it is allowed in the province of Ontario. It can be very tricky and has to be performed in the proper and legal way. There are instances that cannot be avoided: for example you and I work for the same brokerage and we each have a buyer client that are registering individual offers on a property not listed with our brokerage. Many registrants do not realize that this is in fact dual agency/multiple representation because there are 2 individual principals being represented by the same agent.

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