Good answer by Alen.

There should be full disclosure, but there's no violation of your rights. It gets a bit more sensitive if the same AGENT is representing both parties. But two separate agents from the same company? No problem. Happens all the time.

In fact, that's one reason why many firms have weekly sales meetings. Sure, they're to brief agents on the latest news and regulations, possibly have someone put on a dog-and-pony show, maybe get a pep talk from the managing broker. But for many, the biggest value is, as we go around the room, agents describe new listings and try to generate interest from other brokers in the room.

Where I am (and at many companies) we have a large board that lists new listings from that firm, and sales made by that firm. So it might read: "123 Main Street...Jane Jones" with Jane being under the column listing agent. And it might read "456 Oak Street...Bill Smith" with Bill being under the column as representing the buyer. Well, it's not uncommon (maybe, on average 8-16 a month) to see "246 Elm Blvd...Jane Jones...Bill Smith." That's great for both of them, and for the company. And, of course for the seller.

Hope that helps.

Yes, dual agency is legal in NY and you really should be happy they have an interested buyer, as a matter of fact even your agent can produce a buyer; keep in mind your any agent from any Realty company can produce a purchaser that will eventually buy your property. Why not speak to your agent and ask him/her to explain to you the required NYS agency disclosure form.

Anna

Dual agency is perfectly legal in New York State. However, it must be disclosed to all parties involved and all parties must agree and sign off on it.

Fiduciary duty does not neccessarily mean only the highest price. It means a duty to represent your financial interests. In today's market an ALL CASH offer that is less than an offer from a buyer with marginal financials requiring financing might be in your best financial interest as opposed to the higher offer.

Terms of a transaction can be as important as the sale price.

I almost can't believe my ears.

Mauried,

Let me try to decipher what seems to be taking place here. You interviewed an agent, liked what he or she had to say and gave them the exclusive rights to sell your apartment. By hiring that agent for the job, you automatically hire the firm he or she is sponsored by. (Agent's get sponsored by a Brokerage, not hired)

Another broker from the same firm ends up bringing a buyer to your listing. -OR- The same agent who is listing your apartment has a direct buyer?

Let's start first with different broker, same firm. What exactly is your issue with this? Are you not happy that another broker from the same firm took the time to bring an interested party to preview your apartment and a possible sale could result from this?
The listing broker which you hired has the fiduciary responsibility to represent you in the best possible light and to negotiate the highest possible price. A buyer’s broker’s job is to bring in the highest sales price for the firm they work for while at the same time working on getting the best possible deal for the buyer.

Second scenario. Same broker/same firm. Broker which you hired brings you a possible buyer. 90% of deals in Manhattan are done through a co-broke sale (same firm different brokers, or two different firms), 10% of our deals are done as direct deals. Exclusive broker that brings in a buyer. That is legal and allowed, just very rare, In order for this transaction to play out without any drama. Your broker had to disclose that he or she will also be representing the buyer and to the buyer that they are representing the seller. Your broker would also need to explain that they are required to get you the highest possible price while at the same time being fair and negotiating in such a way that ideally both parties will meet in the middle and agree on a set price and terms of the sale.

If the broker you mention is a different broker, same firm, they don’t really need to bring it up, you would find out who’s who if an offer is submitted.

Joe mentioned something about you having rights to ask the potential purchaser to get another broker to represent them from another firm…..I would like to see that happen. #1 one of the biggest mistakes that ever happen is when a seller meets the buyer before the closing. Deals fall apart. Since you won’t be negotiating on your own behalf, there won’t be an opportunity to bring that up, and even if there was. You are almost guaranteed to lose that buyer completely. That’s absolute nonsense. No seller can ever demand for the buyer to be represented by someone who the buyer didn’t choose on their own and it really isn’t any of their business.
If on the other hand you don’t trust your broker to negotiate on your behalf, only in that case should you ask them to refer this buyer out to another agent within the same company to represent them as the buyer’s broker.

If you got a live buyer, and the offer is right, do you really care who is representing who? As long as everything is ethical and legal, don’t sweat the small stuff.

Hi Mauired,

This is a tough one. Fred is right, you should definitely check your listing agreement for language on what is call "dual agency" and "In-House sales". In NY state, In most cases, dual agency is required to be disclosed and accepted, in writing, by both the purchaser and the seller "prior" to showing the property. It is both illegal and unethical not to disclose this information and have it accepted, in writing, by both parties. Here is something most people don't know: Agency Disclosure is not required in writing for Co-op apartments. It should be, but it isn't. Check your agreement and speak with your attorney about this. You should also speak with the manager of the Real estate office about how they deal with dual agency. If you are not satisfied with their answer, look at my answer below.

If you are not selling a co-op (and probably even if you are), you have every right to ask that the potential purchaser be represented by someone in another company. You do not have to accept dual agency and don't get bullied into it by the company representing you.

Agency is one of the most difficult concepts in Real estate, so please feel free to contact me with any questions. All the best,

JOE GREENE
Broker/Owner
WEICHERT, REALTORS - House & Home
(917) 974-2600 (Cell)
joegreene@weichert.com

In commercial real estate, that is known as "the Chinese Wall".

In residential, it is highly discouraged, but some States permit it, and some Brokerages will practice it,
if they have your written permission.

Read the Fine Print in your Listing Contract Agreement.

Call the Broker of the Agency to discuss your concerns.


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Best wishes,
Fred
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