New Agent Confused with Dual Agency (commission, Realtor, agreement, listing)

[Rudydog1]

Morning...OK...recently licensed I have a question about Dual Agency. In my state of Virginia that transaction is allowed however recent post licensing courses strongly discourage the practice for obvious reasons.

Here is my confusion. Our realtor signs have our phone numbers only, therefore the potential for a customer to contact me directly are pretty high. I was attending an Agency Law class the other day and the discussion of dual agency was covered.

The instructor stated that if a customer contacts me directly, after I disclose to them that I represent the seller and they are not represented I can show them the home and answer general questions. Here is where I am concerned. My current listing agreement states no dual agency. So where do I draw the line with the customer. The instructor stated that they should be referred to another agent in the office {as the broker would want this}. So if this is the case and they are ok with being handed off..does that automatically become a buyers agency situation in my own office? We are small and walls are thin. In less I misunderstood, it sounded like the in house second agent would not really be a buyers agent if no other homes were involved therefore the other 3% buyers commission would be lower..?

Not to dis on my broker or office mates, seems like there are varying views how some things should go...I do not want to get into trouble nor not provide my client with the best service.

One other quick question is I am assuming that I am to keep my own files, locked up..what if any info is my office AB and Broker allowed to maintain. Both are working agents..

Thank you so much

[George Chong]

In Georgia we are allowed Dual Agency but my office does not allow it. Think about it, how can you get the best price for your Seller and it also be the best price for your Buyer? More than anything, you don't want to confuse your client or customer. You have specific fiduciary responsibilities to your client (the person(s) that you have a written agreement for representation) than you do to a customer. In the past if I am representing the Seller as a client and the Buyer is unrepresented and chooses not to seek representation, I have the Buyer sign a form stating that they are a customer.

You are describing designated agency if you refer an unrepresented buyer to someone else in your agency. The buyer will become a client of the designated agent and thus have representation and you will share the commission with the buyer's agent. It does not matter how many properties that the new Buyer's Agent showed the buyer - that is between the two of them.

There is no information in my files that would "tip off" anything to a Buyer's Agent. I don't make the decision on what a Seller will accept so even if there was a snoopy agent that was representing a Buyer on my property, what information would they find other than the listing agreement and the tax records?

[MikeJaquish]

You absolutely need to ask your broker. You are working through your firm, and firm policies rule. I believe that your broker can require any information desired from you, unless you are representing opposite sides of the same transaction as fiduciaries.

Does Virginia not allow you to represent the seller and work with an unrepresented buyer, as long as you have written confirmation from the buyer that you represent only the seller?
Of course, from a liability standpoint, you may be farther ahead to refer the unrepresented buyer to another agent, possibly outside your firm.

[Silverfall]

You need to talk to your broker. Agency is handled differently across states. Brokerages handle it differently as well. If your broker can't answer this most basic question for you, find a new brokerage to hang your license.

[MikePRU]

As others have said, you should talk to your broker about this. Local laws are in play in this situation which only people who practice in VA would be aware of. Also, office policy comes into play as well.

[AZJoeD]

Originally Posted by Rudydog1

My current listing agreement states no dual agency. So where do I draw the line with the customer.

If you get a call about the house. Disclose to the caller that you represent the seller, that they are entitled to their own representation from any agency but you will not represent them. If they use another agent in your brokerage it will be a Dual Agency situation (agency is with the Broker not agent) anyway so let them proceed on their own. Be honest and fair, nothing more or less.

[Rudydog1]

Originally Posted by AZJoeD

If you get a call about the house. Disclose to the caller that you represent the seller, that they are entitled to their own representation from any agency but you will not represent them. If they use another agent in your brokerage it will be a Dual Agency situation (agency is with the Broker not agent) anyway so let them proceed on their own. Be honest and fair, nothing more or less.

AZJoeD..Amen to your comments. Coming from the comfort of many years of banking where things are very black and white I sometimes feel like I am walking on thin ice as an agent. Especially after attending post licensing courses where you learn about all the things that will get you into trouble.

[yousah]

Our state had to change the brokerage laws when it first adopted dual agency. It used to be that the broker 'owned' all the listings. They changed is so that there was a designated agent in the office who exclusively 'owned' that listing so that other agents in the same office could receive referrals like in your example. The managing broker has a responsibility to secure the files in the office so as to prevent the disclosure of any confidential data.

[tomocox]

In Kentucky, "Dual Agency" is alive and very well, and I approve. In Kentucky, the entire brokerage, no matter how large is "dual" when the listing agent and/or another agent in the firm are under the same broker.

The simple principle that I instruct our agents to understand is that a "Dual Agent" can do "NO HARM" to either the buyer or seller. Yes, there is a fine line.

Prior to all this agency crap, and that is what I feel it is, the very definition of brokerage meant that we "bring buyers and sellers" together. We were and still should be negotiators. I believe that whether in the same brokerage, the same agent or same-same (sic). We should be representing the unborn child, the completed contract. This is controversial, I know, but it works.

[Rudydog1]

Originally Posted by tomocox

In Kentucky, "Dual Agency" is alive and very well, and I approve. In Kentucky, the entire brokerage, no matter how large is "dual" when the listing agent and/or another agent in the firm are under the same broker.

The simple principle that I instruct our agents to understand is that a "Dual Agent" can do "NO HARM" to either the buyer or seller. Yes, there is a fine line.

Prior to all this agency crap, and that is what I feel it is, the very definition of brokerage meant that we "bring buyers and sellers" together. We were and still should be negotiators. I believe that whether in the same brokerage, the same agent or same-same (sic). We should be representing the unborn child, the completed contract. This is controversial, I know, but it works.

tomocox.."Dual Agent" can do "NO HARM" to either party says it all! I think for myself personally until I obtain more experience I will stick to representing one side or the other. Another senior agent in our office stated that she would pay me a referral fee if I gave leads to her. To my knowledge the broker has not appointed any designated agents accept for himself. Our office is very small. Thank you for the information..