Tag Archives: Best interests

Dual Agency Conflicts- Connecticut

“In dual agency, the agent represents two parties in the same transaction. Dual agency requires equal loyalty to two different principals at the same time – a high burden that means neither principal has the full, undivided loyalty of the agent. Dual agency arises, for example, when a real estate broker is the agent of both the seller and the buyer. The broker’s sales associates as agents of the broker, also have fiduciary or statutory responsibilities to the same principals.  The challenge is to fulfill these fiduciary obligations to one principal without compromising the interests of the other.  While practical methods of ensuring fairness and equal representation may exist, it should be noted that a dual agent can never fully represent either party’s interests because the duty of undivided loyalty cannot be shown to both principals at the same time.  Similarly, it is impossible to maintain both confidentiality and full disclosure to parties whose interests are in opposition.

Because of the risks inherent in dual agency – ranging from conflicts of interest to outright abuse of trust — the practice is illegal in some states.  In those states where dual agency is permitted, all parties must consent to the arrangement, usually (and always preferably) in writing.”  – Modern Real Estate Practice 19th Edition Dearborn Real Estate Education

Local Agents and Brokers Laughed At Me, when I said I was going to exclusively represent buyers. But then NBC put me on TV for free through out the tri-state area and Woman’s Day Magazine recommended to home buyers across the country to call me…I smiled and laughed alot!

“Sellers Trust is founded on one simple principal, make a promise and keep it.”  – Steve Schappert.  The big advantage to agents is the ability to stand above the crowd, by doing the right thing and making more money by specializing.  Regardless of your market your competition is typically hundreds, if not thousands of other agents.  You can be the expert and take a stand in your community.

Never Agree to Dual Agency Representation

NEVER AGREE TO DUAL AGENCY REPRESENTATION

Written by Loren Hoboy on Sunday, 20 October 2013 2:11 pm

Dual agency occurs when real estate agent represent both the buyer and seller on the same transaction. This occurs when a Buyer goes to a builder’s showroom and talks to one of their sales people, or when you call a Seller‘s agent directly from a sign or ad to view a home you are considering.  It also occurs when you buy a house listed with the same Real Estate Brokerage company that your agent represents.

Dual agency means the Realtor is serving two masters. Other professionals like lawyers are not permitted to engage in this practice.  Many real estate agents are not experienced and qualified to handle this conflict. It is illegal in every other fiduciary profession except under the most extreme circumstances.   Under Dual Agency, real estate agents/brokers collect a double commission and theoretically they are prohibited from doing anything to the detriment of either party.

Dual agents are legally prevented from negotiating price or terms (two of the most important reasons consumers hire Realtors). Dual Agency is a conflict relationship that strips buyers and sellers of the Realtor’s service to a level that is essentially abandonment. It means that they are getting paid twice as much for doing much less work. In other words, all the reasons you hired your broker vanish – often with little warning. The broker could be acting in the client’s best interests all the way up to finding the house that creates a dual agency. At that point the buyer or seller are on their own.

Instead, when you use only an independent Buyer’s Agent they have a fiduciary duty to serve only your best interests.   With Dual Agency representation you are taking a much higher risk.

Realtors, many who typically have little or no understanding of the legal ramifications of their own fiduciary relationship with their clients, can illegally counsel their clients of claimed “benefits” of dual agency or that it is “Not a Problem” as they ask you to sign the Dual Agency waiver. There are NO benefits to dual agency and you should NEVER agree to dual agency. In my opinion, find a small brokerage firm with highly qualified real estate agents and insist that they not engage in dual agency. The likelihood of dual agency arising with a smaller firm is far less than with a large real estate firm.

AVOID DUAL AGENCY-DO NOT SIGN THE DUAL AGENCY AGREEMENT- GET A TRULY INDEPENDENT REAL ESTATE AGENT TO REPRESENT YOU!

via Never Agree to Dual Agency Representation.