Foreclosure in 18504>Question Details

Mike, Real Estate Pro in 18504

is it unethical for a listing agent for a foreclosure property(workinfg for fannie mae) to also work for a client on the bidding side?

Asked by Mike, 18504 Fri Feb 11, 2011

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Dual agency is not unethical, but may not necessarily be legal in some states. Some agents choose not to do dual agency even if it's allowed in their states.

Here's a link to dual agency in Pennsylvania http://membrane.com/philanet/benigno/pa_law.html

And here's how one agent feels about dual agency http://activerain.com/blogsview/12648/why-i-don-t-practice-d…

In the end....think of it this way; when one is in court, isn't it normally the case for each person to have his own representation? By the same token, in court, it is generally an adversarial position, and someone pays

On the other hand, if both parties come to a mutually satisfying agreement using only one person to present both cases, and when both parties approach the process intelligently and logically, that could be an advantage/benefit as well.
0 votes Thank Flag Link Sun Feb 13, 2011
Fannie May or not I always recommend a buyer and seller agent unless I know all parties are real estate savy.
0 votes Thank Flag Link Sat Feb 12, 2011
No, it's not unethical. However, I personally do not feel the buyer is getting proper representation when the agent is also representing the seller. If you are the buyer, find your own agent if you can. If you a really uncomfortable with the situation, you could ask the broker for someone else to represent you.

So offices do not allow, as a broker choice, dual agency because the agent can not represent either party to their fullest.
0 votes Thank Flag Link Fri Feb 11, 2011
Hello Mike,
No, it is not unethical in some states for the listing agent to also represent the buyer. It's called "dual agency". All parties must be in agreement to the situation and sign a document stating such. This type of agency agreement can be for any real estate transaction (regardless if the seller is a bank) in which the listing agent represents both sides.
Check with a local real estate firm or your agent ,if you are using one, to determine if your state recognizes "dual agency".
Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Fri Feb 11, 2011
No it is not unethical. It is called Dual Agency. It is arguably difficult to be a slave to two masters. But as long as everything is disclosed it is just fine.

Now please keep in mind that there is a difference between working with & working for a client. As a Listing agent an agent can assist, but not represent the interests of, a buyer. Unless & until an agreement s reached between buyer & agent they are not representing you and continue to work for the Seller only.

it is because of these type of scenarios that PA law REQUIRES the use of the CONSUMER NOTICE (attached). This is required to be provided to a client during the first substantive meeting between agent and consumer.
0 votes Thank Flag Link Fri Feb 11, 2011
It depends on what your local agency laws are. In Maryland dual agency happens when the buyer's and listing agents are affilliated with the same brokerage. No one agent can represent both sides at the same time. The listing agent's client is the seller, and can have a buyer customer, but must disclose that their fidiciuary responsibility is to the seller only.
0 votes Thank Flag Link Fri Feb 11, 2011
Dual agency can be a fine line in representing both the buyer and seller, especially on a foreclosure property. A professional agent can do this while still looking out for the buyers best interest. Dual agency should be no different on a foreclosure property than any other property.
A big part of the answer will be what the bank requires for dual agency.
Good Luck,
Vicki Holmes
0 votes Thank Flag Link Fri Feb 11, 2011
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