Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Is it considered designated agency in NV and CO when an agent is handling both sides of the transaction? In that case am I correct in understanding that the buyer is always the customer and the seller is always the client?
Am I correct that there's no designated agency in a transaction involving a buyer's agent and the list agent?
There are two "agents" from the same company, each the broker for their client. In all of our listing contracts the licensee is the designated agent - unless the broker and the client agree to change the designated agent. (In the event of a personal issue, a vacation...the managing broker would "designate" some other broker.
If the buyer wants to see my listing the seller has chosen whether we can become TB's in the event of a transaction between a seller client and a buyer client (same broker) - but the reality of me having an agency relationship with a buyer for a listing I already have is slim.
In the event of the transaction proceeding with one broker, chances are, I have an agreement with the seller (client) that remains in place and the buyer is treated as a customer. Smart buyers have their own representation from the start. But sometimes, the deal is more important to the buyer than the representation. Their choice.
OIC It's called transaction brokerage when you're handling both sides. (I had thought that was when you were in a designated agency situation - things are starting to become clearer!)
Since you CO agents are "brokers" for each of your clients, I can see where that would really cut down on a "dual agency" situation, since here in AZ it's not uncommon for a client to want to write a contract on one of our company's listings.
I think it sounds like it would be a nice way to do business. If I'm finally getting this, the contracts with the clients would be with the individual agent (broker), instead of with the company broker. That would be much better from what I can tell.
2b - it sounds like you were in business when the change was made there in CO. Do you prefer the current setup?
Note that CO is way out there all by themselves. The only one close is FL.
Transacton Brokerage means what it says. The agent (broker in CO) runs the transaction...but gives advice and counsel to nobody.
Designated agency avoids the dual by setting up two agents as broker for the seller and buyer respectively. If I personally take both sides, which I can, I am simply a dual. If I am designated for one side by the broker and another agent is designated for the other neither agent is dual. The broker is still compromised but that is not a problem as long as the broker stays out of the transaction. It can, theoretically be a problem...but like the EBA conflicted by two buyers...it is practically very rare.
With our strange protocols it is well inside the paradigm.
In AZ, the Designated / Employing Broker has Primary responsibility - regardless of their "involvement" in the transaction
Greatday, I don't think anyone was disputing the broker's responsibility/involvement in a dual agency situation in AZ. I think 2bindenver and olecapt were trying to help me (an AZ agent) understand the concept of designated agency as it applies in NV and CO. I had just taken a class instructed by someone who serves on an ADRE disclosure committee and the question came up as to whether AZ would consider changing to designated agency like CO. . . . so I was just trying to get a handle on the differences.
2b - it sounds like you were in business when the change was made there in CO. Do you prefer the current setup?
I passed the test for the salesman's license in 1989. Buyer Agency was coming into it's own and our listing contract was 2 legal size pages. I passed the brokers test in 1994.
Then we became a broker only state.
Then they approved Transaction Brokerage
Then they outlawed dual agency.
No the big hub-bub is about the Sellers Property Disclosure and the Meth lab law (if you know the house is a meth lab you must disclose, but if you have a state licensed cleaning company come and complete all the work, then you don't have to.)
It make more common sense this way. The Brokerage never had any knowledge before. But the courts said they had imputed knowledge, so they lost. In my office my broker is there if I need to ask him a question. "Would we release the earnest money to the buyer if we had a BA signed without a release signed by the seller?"
The transaction manager files all the documents (we have to fax or email them in the correct order) and won't pay us unless she has them all signed.
I don't need a lot of supervision at this stage of my career, but I love the camaraderie and the energy of the newer brokers...it is so much harder for them to get established now then it was way back when...
Thanks for the insight, 2b. I think anything that can be done to eliminate dual agency would be a good thing. Of course, transaction brokerage doesn't sound a whole lot better - just happens much less often.
Interesting disclosure issues these days. And of course meth lab disclosure is on a state by state basis. No wonder people are confused when they relocate to a different state - so many disclosure issues are different, including agency.
PS - I was going to give you some rep points, but wasn't allowed.
Greatday, I don't think anyone was disputing the broker's responsibility/involvement in a dual agency situation in AZ. I think 2bindenver and olecapt were trying to help me (an AZ agent) understand the concept of designated agency as it applies in NV and CO. I had just taken a class instructed by someone who serves on an ADRE disclosure committee and the question came up as to whether AZ would consider changing to designated agency like CO. . . . so I was just trying to get a handle on the differences.
NC is a Broker state as well. We also practice dual agency, designated agency, and sub-agency. I was gonna chime in; however he has done an excellent job explaining and there are many similarities. We do not practice TA.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It's called transaction brokerage when you're handling both sides. (I had thought that was when you were in a designated agency situation
- things are starting to become clearer!) 
