Dual Agency Should Be Banned in All States

Reblogger Barbara Todaro
Managing Real Estate Broker with RE/MAX Executive Realty 104763
http://actvra.in/5422

I love this post and agree fully with Bill Gassett..... I hope every real estate agent on this site reads it.... and dual agency has no role in a transaction other than to provide the full commission to one agent.

Original content by Bill Gassett 91362

 

Dual Agency Offers No Benefits to Buyers and Sellers

How Does Dual Agency Work

For those of you reading who are not real estate agents, dual agency is when one real estate agent represents both the buyer and the seller in the sale of a property.

In some states, dual agency can be the two agents from the same company each representing the buyer and seller. I will get that situation in a minute.

Frankly, dual agency is the dumbest thing that was ever invented for the real estate industry. Why might you be asking yourself? Simple -  neither the buyer or the seller has proper representation. Both buyers and sellers often ask what is dual agency and how does it work.

When a real estate agent becomes a dual agent, they technically represent both parties in the transaction. To give you an idea of how stupid that is think about an attorney trying to represent the plaintiff and defendant at the same time in a lawsuit.

If that sounds moronic to you, it's because that situation it is just like dual agency.

When a consumer hires a real estate agent, they expect that person to be in their corner. They are hiring a professional they can count on to give them sound advice. They may be even looking for their agent to guide them through the process if they are a first-time home buyer.

The advice an agent normally gives can start before, during or even after a sale has taken place. With dual agency, a real estate agent is not able to give proper guidance to either a buyer or a seller.

For example, if a buyer finds a home they would like to purchase and asks the agent what they should offer the agent is not allowed to give them advice.

On the other side of the coin, if the sellers asks what they should counter offer at, the agent is not allowed to help them either. It is one big cluster $#&*!

Both the buyer and the seller are in an awful position because neither of them has any true representation!

So who benefits from dual agency? There is only one party that benefits from dual agency and that is the real estate agent. With dual agency, an agent has the opportunity to what's known as "double side" the deal or make double the commission.

There are lots of real estate agents that will tell you that dual agency can be done. No problem they will insist. Of course, they will tell you that because they want the opportunity to make more money.

Human nature often gets in the way of ethics, and that's exactly what happens with this arrangement.

Is there any wonder dual agency is still around? In this ethical agents opinion, dual agency should be banned in every state. In many states, it already has been!

Dual Agency is Different in Some States

One thing that should be made abundantly clear is that the term "dual agency" means different things depending on the state you are located in. So when someone asks how dual agency works in real estate, you need to know where the parties are located and the associated laws for that state.

For example, as mentioned above, in some places dual agency is defined as when two agents from the same company each represent a buyer and a seller in the transaction. Frankly, I have no problem with this arrangement as each party has representation.

This is completely different than one agent trying to be masters to two different parties. They are not even remotely similar situations.

In Massachusetts, where I am located this is referred to as "designated agency".

There are a lot of real estate agents who will take offense at me writing an article like this. Do I care? No! Doing what's right for a client has always been more paramount to me than making more money.

I like seeing consumer laws change for the better. Banning single agent dual agency would do just that!

Do yourself a favor and take a look at the two references above on dual agency. You will find the first article on dual agency is one of the most detailed posts every written on the subject.

If you are planning on buying or selling a home shortly, it is vital to know how agency law works in your state.

Not understanding the law can put you in a terrible position. 

If you find the article helpful, I will encourage you to share it with your social networks.

You will be helping a lot of people that have no idea what dual agency is and how it works! There are lots of real estate agents who love to sugarcoat dual agency into something acceptable. Don't believe it.

 

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Ambassador
2,314,864
Paul S. Henderson, CRS, REALTOR®,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Although it seems to be some people's agents bread and butter; I have to agree with Bill Gassett on this one . Thank you for the reblog this morning Barbara Todaro

Apr 18, 2017 05:57 AM #1
Rainmaker
3,669,126
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Bill is usually right on target with everything he says.... and this one is a bulleye....

Apr 18, 2017 05:58 AM #2
Rainmaker
2,226,308
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I will have to head over to his post next. I do think it is impossible to get the lowest price for a buyer while getting the seller the highest and best price they can Barbara Todaro . Here in NH we have a transactional broker designation where a listing agent can show, state facts and write an offer for a buyer that they dictate after the buyer signs the state agency disclosure. 

Apr 18, 2017 06:05 AM #3
Rainmaker
1,525,842
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I agree with this as well, such a great choice for a reblog.  I have never been in a dual agency role and likely never will.  Even if the perfect situation for it came about, I still wouldn't likely be comfortable with it.

Apr 18, 2017 06:45 AM #4
Rainmaker
3,669,126
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Scott Godzyk to do the job properly, each client deserves proper representation by his/her own agent....

Brian England and that's because greed is never part of your program...

Apr 18, 2017 07:12 AM #5
Rainmaker
3,099,983
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I do a lot of dual agency and always give both parties he option of another agent. In 20 years not one has taken me up on that offer and many say it was the best transaction they had ever been involved in. Many come back to me hoping to do it the net time they snake a move

Apr 18, 2017 07:19 AM #6
Rainmaker
3,669,126
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

William Feela agents do alot of things that are not the best decision, and they are fortunate enough to not have a glitch in their system....but when that glitch happens, only one side will win... and which side will you be on???? 

Apr 18, 2017 07:23 AM #7
Rainmaker
1,835,254
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi Barbara... I am not a fan of personal dual agency. As an agent I can't serve two masters exclusively. It's an oxymoron. But I don't have a problem with designated agency. We have huge companies in town and it's very likely agents from the same company represent both buyer and seller. My company has a bunch of offices and often I am on the other side of a transaction with an agent whom I don't know, have never met. That agent might as well be from a competing brokerage.

Apr 18, 2017 08:00 AM #8
Rainmaker
3,669,126
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Nina Hollander I understand.... agents in my office participate in dual agency.... my team members don't.... we're listing agents and that's a clean deal with everyone having proper representation....

Apr 18, 2017 08:04 AM #9
Rainmaker
1,835,254
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Barbara Todaro ~ hi Barbara... you run a certain kind of real estate practice where all you do is list. But are you saying that if another agent in your office brought you a good buyer you would not do the deal because your company is a dual agent?

Apr 18, 2017 08:10 AM #10
Rainmaker
227,899
Jerri McCombs
Hendersonville NC Relocation - Hendersonville, NC
Hendersonville NC Relocation

Hey Barbara, Thanks for the repost. I didn't see the first on. I agree with you and Bill, I did it once my first year in real estate becasue everyone in my office said it would be great! It was awful, I felt like I had to keep my mouth shut and let them do whatever they wanted with no advice or help. I will NEVER do a one person dual again. I agree it should be illegal!

Apr 18, 2017 08:42 AM #11
Rainmaker
2,130,473
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Barbara and thanks for the repost, missed it first time around.  I am all for doing away with dual agency,

 

Apr 18, 2017 10:17 AM #12
Ambassador
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Dual agency is a double edged sword and offers the least protection to the buyer.  In my 15 years in the business I only did it once and it was on a condo

Apr 18, 2017 03:42 PM #13
Rainmaker
3,669,126
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

it surely is, Ed Silva keep your butt out of court...pick a side and stay there...

Apr 18, 2017 03:57 PM #14
Rainmaker
3,633,451
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Barbara.  I agree with Bill also.  Though, most agents just don't see the problem.

Apr 21, 2017 05:12 AM #15
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Barbara Todaro

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