Designated Agency is coming to NH

By
Real Estate Agent with The Bean Group

As of January 1, 2009 Consumers in NH will now have another option when it comes to working with a Realtor. As of today, Consumers have Seller Agency, Buyer Agency, Non Agency and Disclosed Dual Agency as options but as of the 1st of the year Designated Agency will arrive in NH.

What is designated Agency and how does it work? The answer is actually quite simple. Seller,Buyer and Non Agency will remain the same, what changes is that now a Realtor can be a Designated Seller/Buyer Agent which virtually gets rid of Disclosed Dual Agency. If some of you are not familiar with Disclosed Dual Agency, it occurs when a Real Estate Agency has a contract with both a Buyer and Seller and a transaction is going to occur between the two consumers. In Dual Agency the Agency and the two Agents represent both parties equally and have to treat them both the same. In Designated Agency the Seller/Buyer Agent is the Designated Agent for the Seller/Buyer and is the only one who represents that Seller/Buyer, all other Agents in the office are considered Non-Agents. This means that a Buyer who has a Buyer Agency contract with Agent Jane at ABC Realty and is interested in purchasing a house that is listed by Agent Jim from the same office has only Jane working for them, Jim is the exclusive Agent for the Seller while Jane is the exclucive Agent for the Buyer.

Having Designated Agency will allow both parties to more fairly represnt their clients best interests, Dual Agency will only occur when an Agent sells their own listing. The Agent will have to get the consent of both of their clients before the property is shown in order to create the Dual Agency, just like it's done right now.

As of January 1st, Real Estate Agencies will have to declare what type of office they are going to become. They will have to decide whether they will practice Designated Agency or remain an office that practices Disclosed Dual Agency.

Comments (1)

Diane Daley
Caron's Gateway Real Estate - Northumberland, NH

I think designated agency will work out great for the large offices, I think the small Home town RE offices will end up with the traditional so ole so ole...  Thanks for the post.  Diane

Oct 21, 2008 02:36 AM