After listing a home for a seller, you’ll speak with many buyers who are interested in the property. In some cases you’ll likely meet a buyer who’s serious about the transaction but doesn’t have an agent to represent them. There is a very likely chance they’ll ask you for advice and to also be their agent.
This scenario offers you the potential to take part in what is known as dual agency. Though many agents may be aware of it, they may not fully understand it. We’re here to explain what it is and whether or not you should avoid it.
What are Dual Agencies?
By definition, dual agencies or a dual agent is when the same real estate agent or two agents from the same brokerage represent both the home buyer and the home seller.
The scenario above refers to when a single agent represents a buyer and seller at the same time. For this to occur, both parties have to agree that it is ok. This is the far more concerning form for many because a single agent stands to collect the commission, usually split by two. Many believe this aspect can influence their actions in either role and often calls for ethical concern.
Another form of dual agency is when two agents from the same brokerage represent both parties. [Read more…]