We are going to continue talking about DUAL AGENCY to educate the consumer on what to look for when in a DUAL AGENCY situation in states where DUAL AGENCY is legal. All Real Estate Brokerage office are practicing Dual Agency because it is legal to do so but MUST be disclosed in writing to both the buyer and seller and get it in writing that they approve this agency. Within this agency there are do's and don'ts. Consumers just need to be aware and if they are comfortable with their agent performing in this capacity then more power to YOU.
CHAPTER 3: INDIVIDUAL POTENTIAL PROBLEM AREAS: SEVEN-YEAR ANALYSIS
3.4.1 Dual Agency
A large number of Board Attorneys express serious concerns about Dual Agency. As one Attorney stated, "Dual agency is a legal oxymoron." The Attorneys are concerned that both licensees and their clients do not understand the nature of dual agency or the agent's duties and obligations. "Agents can't explain it, consumers don't understand it, lawyers recoil from it, and the courts, by and large, haven't yet put it to the test. It looks fine on paper, but isn't working in practice." The Attorneys are also concerned that even if licensees do understand their duties, they cannot adequately represent both parties. "Very few agents are able to be completely loyal and objective on behalf of two principals. Many still don't understand it or govern themselves accordingly . . . . Dual agency is simply impossible to abide by in its purest sense and agents have a terrible time trying not to cross the line." Attorneys also link this Problem to Breach of Fiduciary Duty, again noting that licensees do not appreciate what being a fiduciary entails.
P.S. We would like to add that if attorneys are having problems with Dual Agency what would be the affect to a real estate agent that barely passed high school or that are dropouts that got lucky passing the real estate exam.
Dual Agency Dos and Don'ts
Because disclosed dual agency is not a concept that consumers, and in some cases salespeople, understand well, spend time educating them on its benefits and limitations if you choose to offer this representation option. Also, make sure dual agency is legal in your state. Here are some more pointers:
Do:
1) Disclose all material facts about the property.
2) Treat the buyer and seller honestly.
3) Provide information about the property and neighborhood within U.S. Department of Housing and Urban Development guidelines.
4) Convey all of the buyer's questions to the seller and get answers in writing.
5) Disclose the buyer's ability to buy and the seller's ability to sell.
6) Explain real estate terms and procedures.
7) Explain closing costs and procedures.
8) Help the buyer obtain financing.
9) Help the buyer arrange for property inspections.
10)Assist in the standard purchase agreement.
11) Work diligently to complete the sale after the purchase agreement is accepted.
Don't:
1) Work to the detriment of either party.
2) Discuss the motivation of either party.
3) Disclose the price the seller will accept or the price the buyer will pay.
4) Disclose terms other than those in the agreements.
5) Say anything that would hinder the bargaining position of either party.
Adapted from Marcie Roggow, Today's Buyer's Rep, Real Estate Buyer’s Agent Council, January 2000
"Original article is found on http://www.realtor.org/�"
Other realtors won't show your property:
It is against the laws and regulation governing Realtors for a realtor to boycott another Realtor's listing or another real-estate company, or not to show their properties. If a Realtor was to do this they would be breaking the law and could get fined or maybe loose their license.
