You should understand from the beginning of your relationship with your real estate agent what type of relationship exists. In most states, real estate agents (both brokers and sales associates alike) are required by law to let consumers know whether they represent the buyer or the seller.
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In the past, real estate agents represented the seller exclusively, whether the agent helped a seller to market and sell the home or helped a buyer find and purchase the home. In other words, agents were at one time legally bound to represent the seller in a residential real estate transaction. In that same scenario, the seller paid both the listing agent and the agent who brought the buyer. However, in today's real estate market, you may find that you can choose between a wide variety of options for representation. If you want to sell a home, you can work with a "seller's agent". If you are purchasing a home, you can work with a subagent of the seller's agent and, in many areas, you can engage an exclusive "buyer's agent". An additional situation in some states is dual agency. This type of agency exists when the buyer decides to have the seller's agent prepare the offer on the buyer's behalf. A buyer who elects this situation, and all additional parties to a transaction, should receive full disclosure of representation. In some states, dual agency also affects the real estate professional's fiduciary responsibilities to the seller. Keep in mind that real estate laws differ from state to state and even from locale to locale. And within this framework of variety, laws can change. For more in-depth answers for your specific situation, talk with a knowledgeable real estate professional and ask about local practices. Be sure that you understand and are comfortable with the options involved when you engage the services of a real estate agent. |
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In Minnesota, we have dual agency. I have participated in many different scenarios regarding agency representation on a number of transactions. The first order of business when speaking with any person regarding real estate, however, is notifying them of agency relationships. Notice I did not say explained, because there is no way of knowing if they fully understand. Our obligation is to notify them...we hope they understand. I go over it several times, but I have no way of knowing.....
In Delaware we have dual agency. We work three states, DE. MD and PA and we have to keep on our toes and know the difference in the contract law and agency law between each. We generally only have a dual agency when we procure the buyer for our own listing. Our company is the dual agent when another agent from within our company brings the buyer to us and vice versa. Agency law has come a long way! When we started there were no agency laws except that everyone represented the seller. That was indeed difficult to have to tell buyers. Disclosure of all this is really important!
I struggle with dual agency. But, I would not want to see it outlawed. It is a consumer choice, and consumers should not have their choices limited unnecessarily.
Transparency and disclosure are crucial, I think.
Harry, Virginia also has Dual Agency as long as it is fully disclosed to all parties. Disclosure is key. Thanks.
Dual agency is here to stay. OK with my if it fully disclosed properly to the consumer