Are Dual Agency Transactions Going to Stop in the Future

By
Real Estate Agent with Sun Lakes Realty DRE #01492138

Are Dual Agency Transactions Going to Stop in the Future

 

 Kristinhamilton@kw.com Mobile- (909) 557-6966 BRE-01492138

There is a case currently in the California Supreme Court involving a major brokerage. An agent listed a large home in Malibu and there was some question as to the square footage of the home; title report vs. owner. The listing agent took the word of the seller and then an offer came in from another agent in the same office. During the transaction, there was never any mention of the square footage discrepancy.

After the sale was closed, the new owner was doing some renovations and found that the title showed the house a lot smaller than he had been lead to believe. 

This case is now in the California Supreme Court and one of  the issues here is the Dual Agency of the broker. NAR is against Dual Agency and has filed a brief as a "Friend of the Court" and C.A.R. is involved but on the side of the Defense as they support Dual Agency.

You can bet many states are watching this to see how the Supreme Court rules. 

Many banks do not allow the same agent to do both sides on Foreclosures and Short Sales as they see a problem with it. When I sold REO's, the banks would not allow same agent but would allow another agent in my office to handle the other side. 

Is there any states out there without Dual Agency?

Thanks for Reading my Real Estate Blog........

 

I've lived in Southern California all my life. I love this area in the Inland Empire and I enjoy sharing. My many years here have given me the expertise as a REALTOR® . If you need real estate information for to sell or buy in the Inland Empire...please give me a call.

 

 

Kristin Hamilton, Realtor

Keller Williams Realty

301 W 3rd Street, Redlands CA 92373

Email- Kristinhamilton@kw.com

Mobile- (909) 557-6966

BRE-01492138

 

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Ambassador
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Anna Banana Kruchten Broker/Owner, CRB, CRS
Phoenix Property Shoppe - Phoenix, AZ
602-380-4886

Interesting that square footage is connected to dual agency. It could have happened, as Patricia Kennedy said even it wasn't a dual agency. Here in AZ square footage is estimated and it's up to the buyer to verify all facts and figures. I am personally not a fan of dual agency as it really does ties the and of both sellers and buyers behind their backs. At some point I do believe it will be gone in AZ as well.

May 14, 2016 08:21 AM #7
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Kristin, Still dual here in Ohio as either the same agent, or two agents in the same brokerage.  I think in the days of mostly virtual agents, two agents from the same office probably isn't the same risk as single agent dual situations.  I just had a contract with another agent out of our office and frankly I wouldn't be able to pick the other agent out of a police lineup because prior to this we've had zero interaction.

May 14, 2016 11:34 AM #8
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Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I totally agree with Patricia Kennedy 's answer, as well as with Liz and Bill Spear 's response...I am not a fan of dual agency at all, although we'll never really know what dual agency costs clients in the long run because most issues don't end up in the court system.

May 14, 2016 11:14 PM #9
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Kristin, We do Designated Agency on every transaction. That means that there can be two agents from the same company in the transaction. The agents do not share info on their clients and robustly represent each of their clients. It works well. We do not do dual agency.

May 15, 2016 06:54 AM #10
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I was looking for your current blogs. I hope all is going well for you.

Jun 16, 2016 11:28 PM #11
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Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

It is a tight rope we walk when we are on both sides of the transaction, I try not to be but it happens once in a while and I go overboard to make sure everything is fair and equitable to both buyer and seller... will it stop... I do not have a Chrystal ball, Endre

Jun 26, 2016 02:18 PM #12
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi John Pusa 

Regulations are probably going to change soon regarding dual agency here in CA. I know many who only sell this way which is probably why the laws are changing.

Sep 28, 2016 02:49 PM #13
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Patricia Kennedy 

It started out as a case involving the sale of a home and both agents were from the same brokerage but has evolved into a huge fight. When I sold REO's my banks did not allow me to be on the opposite side but another agent in my office could represent the buyers. I still sort of think the way the bank does but when a dual agency with me representing both, I do it but have to wear two hats and go back and forth. I understand that some buyers might be suspicious of dual agency.

Sep 28, 2016 02:54 PM #14
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Dan Hopper 

I like the system in Colorado and CA is on the verge of a change soon I think? Yes, I agree with you that the buyer's agent might have more liability as if there was a question or he knew something, he should have helped his clients to figure it out. Listing agent has 3 choices when putting a listing in the MLS; Appraiser, Assessor, or Client. I always go with the Assessors office and then if there is an exception, I write it in in description or agent comments.

Sep 28, 2016 03:00 PM #15
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Hannah Williams 

I think your state and mine are pretty much the same for now. Hope all is well with you!

Sep 28, 2016 03:01 PM #16
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi James Dray 

I suspect there are other cases but may not hit the papers and social media sites and are quickly resolved.

Sep 28, 2016 03:05 PM #17
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Kathy Streib 

You are so right as full disclosure is so important. If buyer changes their mind, then they will cancel and find another house and same for seller as many buyers looking.

Sep 28, 2016 03:06 PM #18
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Anna Banana Kruchten 

This case snowballed and now there is changes in the works. Normally an appraisal is done so if there is a sf discreptancy, they find it first and then there is much discussion between parties and agents. In case deals without an appraisal, things like this can slip through the cracks.

Sep 28, 2016 03:09 PM #19
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Liz and Bill Spear 

We have 220 agents signed up in our office and I do not know all the new people so if I did a deal with one, I might not even see them the entire transaction. Always important to be accurate and disclose.

Sep 28, 2016 03:12 PM #20
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Susan Haughton 

I agree too and if it went away tomorrow, I would not be upset.

Sep 28, 2016 03:14 PM #21
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Debbie Reynolds 

I think Designated Agency sounds more safe than Dual Agency. Protection of the clients is so important.

Sep 28, 2016 03:16 PM #22
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Roy Kelley 

I had been busy on two trips and moving again. All is well and I am again blogging daily when possible.

Sep 28, 2016 03:17 PM #23
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Endre Barath, Jr. 

I like your answer and feel the same.

Sep 28, 2016 03:18 PM #24
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

We also have designated and dual agency Kristin Hamilton CA Realtor  I really do not see a problem with this type of representation when it is disclosed to all parties

Sep 29, 2016 12:56 AM #25
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Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Hannah Williams 

I agree but apparently there is problems with agents who do not disclose but of course if you choose not to follow the rules here, probablly not following the other real estate rules also. Why should all be penalized for a few who choose not to! This is a big disagreement between NAR and CAR in our state.

Sep 29, 2016 01:48 AM #26
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