Can Dual Agency Realtors Be Completely Ethical??

Here in Texas, dual agency is practiced by the broker and the broker assigns representatives to work with each party.  If a sales agent is representing both sides they are not really a dual agent, they represent the seller and they need to disclose that fact to the buyer.  I have done this twice but I don't like to do it because I don't feel like the buyer is getting the best representation that they can.  My advice to a buyer would be hire a realtor that you trust because it doesn't cost you anything and they can give you a lot more information that a Realtor who represents the seller can.

Tamara

If a dual agent does his/her/their job(s), they are doing nothing to advocate the position of either party in the negotiation of a transaction.  Since most agreements allow the client to opt into or out of dual agency, there does not seem to be an ethics issue.  Does dual agency ever benefit the consumer?  Probably not.

I'm working on a contract now where buyer doesn't have an agent. He asked my why I didn't have him fill out anything disclosing dual agency. I told him I'm not a dual agent, I represent the seller, and you are an unrepresented buyer. You don't need an agent to buy anything. I provide you with everything I know about the property, I disclose everyhting there is to disclose, I'll answer all of your questions, and guide you through everything you need to know from contract to closing, but I'm not a dual agent. And, I don't double charge the seller on commission. My commission will be 3%, the other 3% that would normally go to a buyer agent just gets added to the sellers net. This happens to be a 15+ acre lot where buyer wants to build a new home. If he did have an agent, the agent would not be able to provide the buyer with 20% the information that I am able to provide. The buyer just tole me what he wanted to offer, I wrote it up, took it to seller, seller countered a few items, took it back to buyer, etc, until they reached an agreement that they were both comfortable with, then we ratified contract.

On the surface, an agent can do dual-agency in California and not have a conflict.  I don't double-end deals because I don't see, as Mike (#2) pointed out, how I can do my fiduciary duty.  Unfortunately, there are many agents who make a habit of practicing dual-agency, especially REO agents.

My personal rule is that I'd double-end a deal where the buyer and seller were sophisticated enough not to really need my advice and I'm just a facilitator.  In that case, with full disclosure, I'd be fine.  Otherwise, I just think it's not right.