In California, "dual agency" is legal, in fact, rampant. Listing agents like nothing better than to "double end" a transaction. Buyers think they get a special deal because the listing agent will sweet talk the sellers into taking their offer. And, I presume, this works much of the time. However, if the buyer thinks that the listing agent is "on their side" in negotiations, that just isn't so! The listing agent's fiduciary responsibility is to the seller, meaning that the listing agent is obligated to get the best possible price for the seller.
IS THERE A TIME THAT DUAL AGENCY WORKS FOR BOTH?
Yes, there are those times and I just went through one. It was a short sale that took many twists and turns:
1. It was a short sale.
2. It was not "arms length" in the normal sense, and needed special waivers.
3. It was a dual agency transaction.
4. Foreclosure was in a few days.
5. The first escrow company quit on us.
6. The principals were nervous and needed a lot of attention.
SO WHAT HAPPENED?
1. The second escrow company just wouldn't quit and held it together.
2. I was holding the principals together.
3. The lender was forthcoming, they held themselves together.
THE OUTCOME?
1. The transaction closed yesterday.
2. The clients are happy and are already referring other business to me.
3. I have developed a relationship with a new escrow company that won't quit on me.
YES, I LEARNED A LOT:
As rule, I like to stay away from "dual agency" transactions, but sometimes it just makes it easier for all concerned. In this case, the lender knew what they wanted out of the transaction, and no amount of negotiations swayed them.
As an independent real estate broker in California, I can deal with all kinds of transactions that might become complicated if there are a lot of internal brokerage rules or too many parties involved.
IN THIS CASE, DUAL AGENCY WORKED.
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