Dual Agency Should Be Banned in All States

Reblogger Tony and Suzanne Marriott, Associate Brokers
Real Estate Agent with Haven Express @ Keller Williams Arizona Realty BR534744000 & BR540649000

Bill Gassett "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."

Right on target - and - re-blog!

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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Rainmaker
997,391
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Thanks very much for sharing. More consumers need to see this.

Apr 19, 2017 06:43 AM #1
Rainmaker
1,461,663
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I believe 9 States have already outlawed it ! What are the other 41 waiting for ?

Apr 19, 2017 07:09 AM #2
Rainmaker
414,523
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise, Meridian, Ada/Canyon/Gem/Boise Counties

I saw this going around yesterday. I meant to go back and read through the comments and comment myself. Thanks for the reminder. -Kasey

Apr 19, 2017 07:33 AM #3
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

You are most welcome Bill Gassett - always good to hear from you - and thanks for authoring!

Apr 19, 2017 07:35 AM #4
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Indeed Michael J. Perry and - thanks for stopping by with a comment!

 

Apr 19, 2017 07:36 AM #5
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

You're welcome Kasey & John Boles - thanks for stopping by with a comment!

 

Apr 19, 2017 07:36 AM #6
Rainmaker
202,464
Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

It is an important topic!

Apr 19, 2017 03:33 PM #7
Rainmaker
537,321
Thomas J. Nelson, Realtor, CRS
Big Block Realty 858.232.8722 - La Jolla, CA
Co-Host of Mail-Right's: Real Estate Agent Podcast

100% disagree and I'm still laughing at the "invented" component. Dual agency offers MANY benefits to buyers and sellers. Bill was ignorant to the benefits when he wrote this one. Don't hate the game, hate the player that abuses the game. I've been a dual agent all my career quite successfully. All those clients still work with me and refer me. I don't know how to juggle well, but I don't hate jugglers for my lack of talent.

Apr 20, 2017 04:03 AM #8
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Agreed Jim Cheney - thanks for stopping by with a comment!

 

Apr 20, 2017 04:57 AM #9
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Each to their own Thomas J. Nelson, Realtor, CRS  - thanks for stopping by with a comment!

 

Apr 20, 2017 04:58 AM #10
Rainmaker
467,446
Carla Freund
Keller Williams Preferred Realty - Apex, NC
Raleigh - Cary Triangle Real Estate 919-578-3111

Nice re-blog. We do allow it in NC. However, if I were buying a home, I wouldn't consent to it nor would I allow my family members. So why would I recommend it to clients? I wouldn't. I've seen it go smoothly. What happens when it doesn't? I personally tell my clients I will always make sure buyers who contact me get into their house (usually via another agent) however, I choose not to practice dual agency. ALL parties have to agree to it including the agent. Why put yourself in that sitiation?

Apr 20, 2017 05:16 AM #11
Rainmaker
1,142,271
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Tony and Suzanne - this is a good re blog.  Many buyers and sellers don't know and should.

Apr 20, 2017 08:28 AM #12
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

We are on the same page Carla Freund - thanks for stopping by with a comment!

 

Apr 21, 2017 05:17 AM #13
Rainmaker
2,130,368
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Thanks Grant Schneider and - thanks for stopping by with a comment!

 

Apr 21, 2017 05:18 AM #14
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Serving Scottsdale, Phoenix and Maricopa County AZ
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