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Old 09-11-2008, 10:52 AM
 
1,151 posts, read 2,669,186 times
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Quote:
Originally Posted by shellytc View Post
Agency is different in all states. In my home state, Virgina....
Yes. as long as the agent discloses to all parties that he is involved in all transactions. And cannot divulge confidentiality to any other party. for instance, agent knows what buyer a offered and what seller agreed to, but cannot divulge that information to buyer b.

Shelly
This is a good example of why the public should be very skeptical when agents claim that they have a "fiduciary" duty to their clients, at least when the agent is free to represent the seller and any number of potential buyers on the same property. A fiduciary duty requires that the person with the duty to their client act at all times for the sole benefit of that client. It is impossible for an agent to represent two competing bidders for the same property (not to mention the seller also) and live up to the responsibilities of a fiduciary.

Not to say such representations are not permitted in any particular state, because in many cases they are, but it would be a misrepresentation for the agent to claim that she has a fiduciary duty to any of the parties involved.

I think in the vast majority of cases, if agents made absolutely certain that each of the parties in the transaction understood what they were giving up in order to permit the agent to represent the other parties, buyers and sellers would not agree to this arrangement. I have a feeling that's why some agents have policies that prohibit this arrangement, even when it is permitted by law.
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Old 09-11-2008, 10:55 AM
 
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Quote:
Originally Posted by Silverfall View Post
My BAA's state that I WILL NOT represent two buyers bidding on the same house.
This has me wondering, Silverfall, how you handle representing multiple buyers simultaneously. Specifically, if you are driving a client around and you pass a house where you have an offer pending for another client, how do you handle that?
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Old 09-11-2008, 11:55 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 19,121,741 times
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Quote:
Originally Posted by shellytc View Post
Dmenscha, that is still dual agency... the broker is still the same. right?

Shelly

Yep still dual agency and permitted in CA. We also have a disclosure form that notices all parties that we are acting as dual agents and by signing the client gives us consent to do so.

This sort of dovetails into our other discussion about credit for buying and selling. If a broker lists a property and spends all sorts of money and time to advertise and market it and then can't represent a buyer for the property, what is the point of advertising it to the public? If you can't represent the buyer, why not spend all your marketing efforts to convince other real estate companies to sell it?

Would one be obligated to put another real estate companies phone number on the advertising?

Dear public; "here is a home for sale, please don't call us because we can't represent you"
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Old 09-11-2008, 12:00 PM
 
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Quote:
Originally Posted by DMenscha View Post
Yep still dual agency and permitted in CA. We also have a disclosure form that notices all parties that we are acting as dual agents and by signing the client gives us consent to do so.

This sort of dovetails into our other discussion about credit for buying and selling. If a broker lists a property and spends all sorts of money and time to advertise and market it and then can't represent a buyer for the property, what is the point of advertising it to the public? If you can't represent the buyer, why not spend all your marketing efforts to convince other real estate companies to sell it?

Would one be obligated to put another real estate companies phone number on the advertising?

Dear public; "here is a home for sale, please don't call us because we can't represent you"
Couldn't Joe Public just come directly to you and not be represented?
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Old 09-11-2008, 12:51 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by Austin-Willy View Post
Couldn't Joe Public just come directly to you and not be represented?
???????????????? Are you suggesting that Joe Public would submit his own purchase agreement and earnest money, open escrow and do all of his own due diligence? I'm having a hard time picturing how that would alter the process.

I suppose it's possible, but I've never heard of it happening. Anyone else?
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Old 09-11-2008, 01:05 PM
 
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Quote:
Originally Posted by DMenscha View Post
???????????????? Are you suggesting that Joe Public would submit his own purchase agreement and earnest money, open escrow and do all of his own due diligence? I'm having a hard time picturing how that would alter the process.

I suppose it's possible, but I've never heard of it happening. Anyone else?
It is how I operate. But, then again, I'm a real estate attorney, so I'm familiar with the process.

But the broader point that I failed miserably to make is that these days buyers often do a lions share of the search. So even if they are represented, your advertisements to the public are still targeting the right folks, imo.
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Old 09-11-2008, 02:37 PM
 
Location: Salem, OR
13,990 posts, read 32,787,719 times
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Quote:
Originally Posted by Austin-Willy View Post
This has me wondering, Silverfall, how you handle representing multiple buyers simultaneously. Specifically, if you are driving a client around and you pass a house where you have an offer pending for another client, how do you handle that?
Honestly it's never been an issue. It's pretty rare to have a client want to see a contingent listing to begin with. Maybe Oregonians are just nice, but people don't typically get bumped out of the way on offers since buyers often choose to not see contingent homes.

I have shown the same houses to different buyers. What I do tell them, when we talk about this clause in the contract, is that if I have two interested buyers in the same house, whomever decides to engage in a contract with the seller first will be the one that I work with on that contract. If the other buyer, then expresses interest in writing an offer, I would have to refer them to another agent.
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Old 09-11-2008, 04:31 PM
 
Location: Virginia Beach, VA
2,124 posts, read 7,937,449 times
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[quote=DMenscha;5223992]
This sort of dovetails into our other discussion about credit for buying and selling. If a broker lists a property and spends all sorts of money and time to advertise and market it and then can't represent a buyer for the property, what is the point of advertising it to the public? If you can't represent the buyer, why not spend all your marketing efforts to convince other real estate companies to sell it?

[quote]

Ahh, maybe cause I told the seller I would? I am being paid a commission to do it?

Yes, I advertise to get clients, as well. A busy agent tends to get busier and I will tell you when I don't have a listing I am out of business... but my number one priority is to my client who signed an agreement with.

BTW, if a buyer comes for that property, I will NOT represent them as a client. I do not practice dual agency. I will treat them as a customer ( I owe accountibility, honesty, etc) but not a fiduciary and not confidentiality... and all know. I tell customer, if you tell me anything material, I will repeat it to my client.

So that is how you do it.

shelly
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Old 09-12-2008, 02:03 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 19,121,741 times
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Quote:
Originally Posted by shellytc View Post

BTW, if a buyer comes for that property, I will NOT represent them as a client. I do not practice dual agency. I will treat them as a customer ( I owe accountibility, honesty, etc) but not a fiduciary and not confidentiality... and all know. I tell customer, if you tell me anything material, I will repeat it to my client.

So that is how you do it.

shelly
I guess this confuses me (don't worry it happens all the time). What's the difference between a client and a customer? If the customer want's to make an offer on the property, doesn't he then become a client as well? Are you saying that if you have this customer, you're not going to give him all the facts? I'm still confused.

Perhaps this is a regional difference in the way business is done.
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Old 09-13-2008, 10:06 AM
 
Location: Virginia Beach, VA
2,124 posts, read 7,937,449 times
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it is agency. When you practiced Sub-Agency years ago, the selling agent worked for the seller (that was their client), and the buyer was the customer. It is still widely practised today. I owe a customer honesty, but not confidentiality (for instance)... That means anything that customer tells me I will tell my client (seller). In the beginning of the relationship we spell out what kind of relationship we will all have. I have my customer sign a paper understanding that I DO NOT represent him/her. I do represent my seller.

Just because someone wants to make an offer does not automatically make them a client.

Maybe be a state difference.. not sure.

shelly
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