Dual Agency - A Trap that can make Lawyers a Nice Living

By
Real Estate Broker/Owner with Oak Creek Realty Group LLC MO# 1999078273

Even though it's perfectly legal in the State of Missouri I refuse to work as a dual agent. I have preached against this practice for years. In the State of Missouri we are required to hand out a Broker Disclosure Form to everyone we work with. We are not required however to explain what it says, just hand it out. So I'm never surprised when I do explain it to someone when they tell they would never want someone acting as a dual agent in their real estate transaction. I always tell my seller that I will work only for them. If I have a buyer that chooses not to be represented I will happily assist them but they will understand that I am working on the behalf of the seller. If a buyer wants to be represented I will refer them to another agent. In my office we are large enough that we practice designated agency so I will refer them to someone in my office. When I had my own office I was too small to practice designated agency so I would refer them outside the office. But I only work for the seller. Its just too fine a line to walk.

How many of you still practice Dual Agency where allowed? How do you justify it? How do you explain it to your listing client? How do you protect yourself from a big legal mess if brought to court?

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Walter Hayes

Keller Williams Realty of Southwest Missouri

619 S Florida

Joplin, MO 64801

Office: (417) 623-9900

Walter: (417) 649-6776

Fax: (512) 519-7578

E-Mail: walter@walterhayes.com

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Rainmaker
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Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Dual agency is always a high risk transaction.  You are right on.

Sep 27, 2010 05:03 AM #1
Rainmaker
601,327
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Walter - As a mortgage gal in SoCA, I too am not a fan and/or proponent of some forms of dual agency.  Two different agents from the same brokerage representing their own clients, the seller or the buyer?  Yes, I have no problem with that form of dual agency.  The same agent representing both the seller and the buyer?  #%!! NO!!!

I have seen far too many of my borrowers make the mistake of using the LA as their BA because they thought they would save a lot of money.  After eight years as an MLO, I have never any of these clients save a lot of money - quite the contrary.  I have some actually end up spending more than they would have had they went and gotten their own BA.

FOR THE RECORD BUYERS:  THE LA WORKS FOR THE SELLER!!!

Sep 27, 2010 05:25 AM #2
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Walter Hayes

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