Designated Agency? (dual agency, agreement, properties, illegal)

[tigerlilly31415]

So I'm wondering if someone can tell me how big of a deal it is if I'm trying to buy a house, and our buyer's agent ends up working for the same company as the listing agent. So the agents themselves aren't dual agents, but the broker is. Definitely not ideal, but is this common? Or something to be avoided at all costs? There really aren't exclusive buyer agents in our area (that I can find), and while we can choose an agent that doesn't have many listings to mitigate the chances of dual agency, designated agency is definitely a possibility.

[MikeJaquish]

It is common in large firms with many listings, or it would be much harder for buyers' agents to do business.
It is not "ideal," but few things really are.
I would prefer designated agency over dual agency with one or two agents involved.


Keep copies and notes of everything, which you should do anyway in any transaction.

[BoBromhal]

The only ideal situation is where you have a very highly-qualified agent working for you, and you're trying to buy a home listed with a different brokerage and a highly-qualified listing agent.

In my personal opinion, after 17 years and 100's of clients, is that there's absolutely nothing to be concerned about in general about designated dual agency. At least not in the Triangle market of NC.

[2bindenver]

It is the preferred way in Colorado. Dual Agency is illegal in Colorado.

[FalconheadWest]

If a listing agent couldn't market their listings to their fellow company agents, you would be missing out on a large part of the agent community. No broker actually knows the confidential information that the actual listing agent knows, so there is no big deal about both agents working for the same brokerage. Some brokerages have hundreds of agents working for them. Some brokerages have under 10 agents. In all cases, the listing agent would want to market to the masses, not everyone minus their co-workers.

[NOLA2SGF]

It worked out OK for me last summer when I was selling my house. The buyer's agent worked in the same office as my real estate guy. I was very pleased with the contract and outcome, and I still feel that way. The buyers were very happy too, so it was a win-win situation.

[dblackga]

Originally Posted by tigerlilly31415

So I'm wondering if someone can tell me how big of a deal it is if I'm trying to buy a house, and our buyer's agent ends up working for the same company as the listing agent. So the agents themselves aren't dual agents, but the broker is. Definitely not ideal, but is this common? Or something to be avoided at all costs? There really aren't exclusive buyer agents in our area (that I can find), and while we can choose an agent that doesn't have many listings to mitigate the chances of dual agency, designated agency is definitely a possibility.

It's fine. Most agents are independent contractors of a brokerage -- i.e., they are not employees, per se. Being friends in a work setting only extends so far when it comes to fiduciary responsibility to a client.

Now, dual agency is something, to my mind, to be avoided at all costs. Designated agency generally isn't going to be a problem. I'd ensure that the designated agent is NOT a part of a team for the first agent, though -- then you're basically in a dual agency situation. If you are worried that your recourse may be limited in case a deal starts to fall apart, you might want to consider including a special stipulation calling for binding arbitration, costs to be borne by the broker, if there is any disagreement in the disbursements of earnest money, etc.

[tigerlilly31415]

ok, one more related question: If I'm considering going with Agent A who mostly works with buyers, and that agent is married to another agent on the team (Agent B) who mostly works with sellers, might I have a conflict of interest if we end up considering one of the properties Agent B has listed? I get that everyone is supposed to be a professional, but that possibility makes me uneasy. But we really do like Agent A...hmm..

[MikeJaquish]

Originally Posted by tigerlilly31415

ok, one more related question: If I'm considering going with Agent A who mostly works with buyers, and that agent is married to another agent on the team (Agent B) who mostly works with sellers, might I have a conflict of interest if we end up considering one of the properties Agent B has listed? I get that everyone is supposed to be a professional, but that possibility makes me uneasy. But we really do like Agent A...hmm..

I would not even consider Hub's listings. Just had about 30 scenarios run through my mind, and none of them comfortable.

[NOLA2SGF]

Originally Posted by tigerlilly31415

ok, one more related question: If I'm considering going with Agent A who mostly works with buyers, and that agent is married to another agent on the team (Agent B) who mostly works with sellers, might I have a conflict of interest if we end up considering one of the properties Agent B has listed? I get that everyone is supposed to be a professional, but that possibility makes me uneasy. But we really do like Agent A...hmm..

The fact that you even brought up the question, tells me that it wouldn't be a good idea. If you truly, firmly felt Agent A was honest, highly professional, ethical, and would work for you 100%, you wouldn't need to ask. And if you don't feel that way about Agent A, the situation with her being married to Agent B might be pretty uncomfortable if you were looking at his properties.