Dual Agency Relationship
I know it’s possible that you’ve seen a real estate agent represent both the buyer and the seller at the same time. You probably felt it was strange and should not be done but I want to let you know that it’s totally okay and there is nothing strange about it. Real estate buyers and sellers often have the opportunity of starting a dual agency relationship with their agents. Despite this not being an issue, it is highly recommended that all parties involved in a dual real estate agency relationship have an in-depth understanding of its meaning and limitations.
A dual agency real estate relationship is when a real estate agent represents both the buyer and the seller of a real estate property. This can happen with two agents or with a single agent. A dual agency with two agents is when the buyer’s agent and the seller’s agent are licensed under the same broker. With a single agent, prospective buyers could ask a seller’s real estate agent to make an offer for a real estate property on their behalf.
There are other countries where dual agency relationships are considered to be acceptable but the law requires that the real estate agent makes sure that both the buyer and the seller are aware that he/she will be representing both of them.
Consent forms must be signed by both parties as a pointer of their understanding of the agreement as well as the limitations. Should any of the parties show reluctance to sign the consent form, the transaction has to be put on hold but if the form is signed, the agreement continues.
A dual agency real estate relationship has some limitations that it puts on a real estate agent. The agent is expected to maintain a high level of transparency between the buyer and the seller.
The agent is required to provide full disclosure concerning the property to the buyer, but they cannot reveal confidential information about the seller. When it is time for monetary offers to be made, a dual real estate agent cannot advise the buyer on how much The memo states that when a person enters into a dual agency relationship, they are forfeiting their right to that agent’s loyalty. The agent then cannot advance the interests of either party. to offer, nor can they advise the seller to accept or reject an offer.