I Know everyone is tired of hearing about AGENCY, but this story has to be shared.
Ever since I decided to take the LEAP of FAITH and jump into Real Estate I have taken every class I can get myself to.
Last year I attended a class being offered in the Firm where I was an Agent. When the notice of the time and date of this "AGENCY" class was circulated, it included a statement that it wasn't going to be your typical AGENCY DISCLOSURE lecture, me being the education nut decided why not!
To my surprise the class filled very quickly.
As I listened to the BROKER who happens to be a certified teacher in our state explain to the class what SPLIT AGENCY was and how it is LEGAL I shook my head and thought to myself, 'SPLIT AGENCY' ARE YOU FOR REAL??!!!
The Instructor noticed my reaction and asked me if I had something to share,I looked up at him and said, "THERE IS NO SUCH ANIMAL!" I will never forget the look of dismay I received from him!
This is what was being taught that day:
SPLIT AGENCY is a way of ALTERNATING RELATIONSHIPS. In other words, going from Seller Agent, to Buyer Agent and vise-versa! The explanation as to how this is done is simple according to the Instructor.
Once full disclosure is given to a buyer prospect, and they choose to be represented, you explain that you only represent them on FSBO'S, NOT FOR SALE, and COOPERATIVE LISTING THROUGH THE MLS, next you have them sign an in-house BUYER AGENCY AGREEMENT acknowledging their understanding that when you start showing them properties you will not be representing them on any in-house listings. The best part is there is even a way to memorialize this so you don't end up at the REAL ESTATE COMMISSION! Just take a sheet of paper and plug in the addresses of the properties you will be viewing with the buyers and note next to each one who it is you will be representing next to the property address before bringing the buyers to view the properties, full disclosure!! (SHOCKING STUFF!!)
I have to be honest, when the Instructor reached this point I stood up and said, "that's DUAL AGENCY, you cannot switch back and forth from being a sellers agent to a buyers agent at your convenience! This limits your FIDUCIARY duties to both CLIENTS, therefore; you become a DUAL AGENT and must disclose it to both sellers and buyers in writing before showing the property, and obtain their signatures on the DISCLOSED DUAL AGENCY AGREEMENT!
Needless to say, the class agreed with me, and the Instructor and I had a closed door discussion, which didn't accomplish anything for either one of us. I let it be known that I didn't agree and would never use this type of AGENCY in PRACTICE and he let me know that I was wrong and if done properly SPLIT AGENCY and ALTERNATING RELATIONSHIPS was completely LEGAL and the best way to avoid DUAL AGENCY! WOW
Is there anyone who actually believes or practices this type of Agency in any state?
How can this be a recognized AGENCY RELATIONSHIP when it isn't mentioned anywhere in the STATE rules or on the AGENCY DISCLOSURE?
How can anyone reduce a CLIENT back to customer status once you have gained information that would give the other party/CLIENT the advantage in the transaction?
Am I wrong in thinking that even if you reduce the Client to a Customer, you still have the duty of CONFIDENTIALITY and therefore cannot share any information that isn't material with the other CLIENT? Hence limiting your ability to fully represent that party? In my WORLD, this is DUAL AGENCY!!!!
I look forward to your comments...
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