What Is A Disclosed Dual Agency?
Disclosed dual agency refers to a situation where a single real estate agent represents and protects the interests of two(2) parties in a single real estate transaction. Both parties represented could be the buyer and seller or the landlord and tenant. The agent or agency represents both parties in real estate sales, purchases, or rentals.
It sometimes creates clashing interests due to leanings towards either the buyer or the seller, which are not supposed to be. In a disclosed dual agency, each party is aware of the existing relationship with the other.
Usually, home buyers and sellers have separate real estate representation. This ensures equity, equality, privacy, and that each party gets the best deal possible. Striking such a deal with a single agent is what dual agency entails.
It is a standard operating procedure that the real estate agent fully discloses things to both the buyer and seller.
A document is signed by the real estate agent, the seller, and the buyer to this effect that details each party’s rights and privileges and a non-disclosure agreement about the hand each party is dealing with beyond what is made available in the public notice.
Often, the home buyers and sellers have different real estate agents. In 10%-20% of home sales, purchases and rentals, there is a dual agency. Clients can choose not to agree to the terms when they discover the dual agency status. As a matter of fact, it is heavily regulated or restricted in certain states.
For instance, it is illegal in eight(8) states, including Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.
Some real estate experts and consumer advocates strongly advise against the dual agency. This is because there are huge doubts over their true neutrality when negotiating deals. In contrast, others believe it is hugely beneficial by helping speed up communications between the two(2) parties.
It is challenging to avoid it when prominent real estate agencies with several agents working for many clients in an area or a locality with a few agents who serve a large population.
Disclosed Dual Agency Example
Suppose a particular individual wants to purchase a property that another is selling but wants to be represented by an agent in the deal. In that case, they might enlist the services of the seller’s agent.« Back to Glossary Index