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06-22-2013, 10:31 PM
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Location: Baltimore
1,759 posts, read 4,961,280 times
Reputation: 1200
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Just a friendly PSA since I see this often:
Dual agency occurs when the buyers agent and sellers agent operate under the same broker. It could be two remax agents from different parts of the state and have never met each other. Because they are under the same broker, dual agency occurs. They may have desks next to each other and lived in the dorms together in college. Either way, a different professional represents each side.
If for some reason you consent to having the same person represent both sides, then you really ought to not buy real estate because you're not ready for it. Your agent has a fiduciary responsibility to you, and you only. There is no way an agent can simultaneously get the most money for a seller and the best deal for a buyer. It's impossible.
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06-22-2013, 10:41 PM
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Location: Needham, MA
8,291 posts, read 12,869,126 times
Reputation: 7665
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Quote:
Originally Posted by davecj
Dual agency occurs when the buyers agent and sellers agent operate under the same broker. It could be two remax agents from different parts of the state and have never met each other. Because they are under the same broker, dual agency occurs. They may have desks next to each other and lived in the dorms together in college. Either way, a different professional represents each side.
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This is not universally true in the state of MA. Here you can setup your brokerage with what's called specific agency. Meaning that only the agent you signed the contract with and the broker represent you. Other agents in the office do not represent you. So, if another agent from the same office brings in the buyer it's not dual agency. If the broker from that office brings in the buyer then it is dual agency. If the listing agent brings in the buyer then it's dual agency.
My office does not practice specific agency but many brokerages are switching to it due to the lower occurence of dual agency. |
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06-23-2013, 01:18 AM
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Location: DFW - Coppell / Las Colinas
40,233 posts, read 46,008,575 times
Reputation: 52903
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Quote:
Originally Posted by davecj
Dual agency occurs when the buyers agent and sellers agent operate under the same broker. It could be two remax agents from different parts of the state and have never met each other. Because they are under the same broker, dual agency occurs. .
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Sorry Dave but bad example. Most ReMax's are more local Franchises and are not state wide companies. Since they are not under one broker they would NOT be in a Dual Agency situation.
I would assume almost all big name franchises would operate this way. |
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06-23-2013, 06:59 AM
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7,551 posts, read 6,136,627 times
Reputation: 16838
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Buying from the listing agent is like letting the District Attorney handle your defense. Many buyers go directly to the listing agent because they're fixated on getting a commission reduction as evidenced by scores of posts here on the subject. What they fail to realize is that the chances of overpaying are far greater when they don't have their own advocate in the deal. Penny wise, pound foolish.
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06-23-2013, 08:45 AM
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Location: Cary, NC
41,372 posts, read 71,912,502 times
Reputation: 43072
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Quote:
Originally Posted by 1insider
Buying from the listing agent is like letting the District Attorney handle your defense. Many buyers go directly to the listing agent because they're fixated on getting a commission reduction as evidenced by scores of posts here on the subject. What they fail to realize is that the chances of overpaying are far greater when they don't have their own advocate in the deal. Penny wise, pound foolish.
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Buying from the listing agent is not dual agency, unless both parties engage the agent in dual agency.
An unrepresented buyer can use the listing agent, which more accurately equates to using the DA for your defense attorney.
At least in real estate, the agent is sworn to be fair and honest to all parties.
Obviously, the benefits of doing so are quite arguable, and quite dependent on the buyer's skills and knowledge and resources. |
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06-23-2013, 10:29 AM
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7,551 posts, read 6,136,627 times
Reputation: 16838
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Agreed. Best case scenario, the buyer has no advocate. He will often still overpay when using a fair and honest agent acting in dual capacity. As a buyer I want an advocate not a person who is sworn to be fair to my adversary in the deal, the seller.
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06-23-2013, 01:40 PM
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Location: Just south of Denver since 1989
11,697 posts, read 32,946,416 times
Reputation: 8655
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There is no dual agency in Colorado. We do have designated agency. One party can be a client, one a customer, or both a customer.
For me, dual agency, is practicing real estate with one hand tied behind your back.
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06-23-2013, 04:39 PM
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Location: Gorham, Maine
1,964 posts, read 4,994,596 times
Reputation: 1465
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Quote:
Originally Posted by davecj
Just a friendly PSA since I see this often:
Dual agency occurs when the buyers agent and sellers agent operate under the same broker. It could be two remax agents from different parts of the state and have never met each other. Because they are under the same broker, dual agency occurs. They may have desks next to each other and lived in the dorms together in college. Either way, a different professional represents each side.
If for some reason you consent to having the same person represent both sides, then you really ought to not buy real estate because you're not ready for it. Your agent has a fiduciary responsibility to you, and you only. There is no way an agent can simultaneously get the most money for a seller and the best deal for a buyer. It's impossible.
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Folks, there are 50 states with 50 Real Estate Commissions (or similar governing bodies) and a blanket statement like this should be evaluated in your own state or jurisdiction. If you are unsure, check with a local real estate professional or your state's web site and search for "Real Estate." |
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06-24-2013, 06:16 AM
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27,104 posts, read 44,835,099 times
Reputation: 15488
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Florida doesn't allow dual agency so that is easily solved! 
Quote:
Originally Posted by davecj
Just a friendly PSA since I see this often:
Dual agency occurs when the buyers agent and sellers agent operate under the same broker. It could be two remax agents from different parts of the state and have never met each other. Because they are under the same broker, dual agency occurs. They may have desks next to each other and lived in the dorms together in college. Either way, a different professional represents each side.
If for some reason you consent to having the same person represent both sides, then you really ought to not buy real estate because you're not ready for it. Your agent has a fiduciary responsibility to you, and you only. There is no way an agent can simultaneously get the most money for a seller and the best deal for a buyer. It's impossible.
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06-24-2013, 06:18 AM
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27,104 posts, read 44,835,099 times
Reputation: 15488
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Quote:
Originally Posted by Rakin
Sorry Dave but bad example. Most ReMax's are more local Franchises and are not state wide companies. Since they are not under one broker they would NOT be in a Dual Agency situation.
I would assume almost all big name franchises would operate this way.
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You are so right but I couldn't rep. you. It is only if 2 agents under the same broker and not under the same franchise name. On top of that has every Coldwell Banker, ReMax, etc. office owned by a dfferent broker an addition to it's name.
It may be different if it is a corp. owned brokerage of a franchise.
Very good post Rakin. |
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