Home Buying in West Hartford>Question Details

Sweetdot29, Home Buyer in East Hartford, CT

What is a dual agent?

Asked by Sweetdot29, East Hartford, CT Sat Mar 31, 2012

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Dual agency occurs when one agent is representing both the buyer and seller; see link for additional information.
1 vote Thank Flag Link Sat Mar 31, 2012
Dual agency takes two forms - dual agency between two agents from the same company (representing the buyer and seller of the same property) and one agent who represents both the buyer and seller of a property. Many states allow for dual agency. In the event that two agents from the same agency are used for the same deal, all contractual transactions must include dual agency forms. The same is true for a listing agent who also represents the buyer. In that instance, a dual agent (for the same deal) cannot operate in a fiduciary relationship with either party and must treat both sellers and buyers equally. They cannot share confidential information and must remain impartial to each party. In effect, they help facilitate the transaction. While dual agency between agents from the same company is quite common (esp. with larger companies), a singular agent representing both parties is less common, simply because many agents and their clients often feel compromised by not having the ability to secure the level of service they may require and prefer.
I hope I've answered your question!
1 vote Thank Flag Link Sat Mar 31, 2012
A dual agent represents both buyer and seller and acts more like a mediator between the parties. Both parties must agree, and information which could influence one side or the other cannot be shared (without permission).

Good luck.

Peter Leeds (Not Just The Sports Guy)
0 votes Thank Flag Link Sat Mar 31, 2012
A dual agent is a company (as well as all agents working for that company) that is representing both the buyer and seller of real estate in a single transaction .

It is not legal in all states.

In states where it is legal it is not legal unless both the buyer and seller have given the company representing them written permission to act as a dual agent.
Web Reference: http://www.naeba.org
0 votes Thank Flag Link Sat Mar 31, 2012
Dual agency means two parties being represented simultaneously by a 3rd party. The obvious example is one real estate agent representing both the buyer and the seller. Now the agent must step back from negotiating and become a facilitator/communicator. In CT, this special relationship must be disclosed to both buyer and seller; if either does not agree to it then the agent must represent just one party and another agent and/or agency must represent the other party.

The dual agent must be honest with both parties and fully disclose material facts about the property. The dual agent may not disclose financial information, motivation level or personal information about one party to the other party unless authorized... in short, the agent has a FIDUCIARY responsibility to BOTH parties. This is spelled out in the appropriate Greater Hartford Association of Realtors disclosure form. Please email me if you would like a copy of this form.

If both buyer & seller have a previous relationship with the same agent, trust the agent completely, and are fairly sophisticated, this dual agency situation can work well.

If the buyer shows up at an open house (never having met the listing agent previously) and decides they want to purchase that property, the buyer may seriously want to consider hiring their own agent to represent their interests.

If you are listing a property, you should ask your agent what their policy is with respect to dual agency... for instance, some companies will insist that in a multiple offer situation the manager will represent the seller, allowing the former listing agent to represent a potential buyer (the seller loses the agent they chose initially, due solely to the broker's policy on dual agency)... Food for thought!
0 votes Thank Flag Link Sat Mar 31, 2012
Dual agency is when one agency is representing both the seller and the buyer. The only duty to clients that is lost in the dual agency agreement is full disclosure. For example, if the agent knows how low the seller would accept an offer, or how high the buyer would go on an offer, that agent cannot share that in information with the opposite party.
Often times in an office, there will be dual/designated agents. That is where the Broker assigns an agent to each side of the transaction, and tells them not to share sensitive information about the other party with each other.
It is common to have the dual agency, and as long as it is disclosed, there is no conflict of interest on the part of the agency. The biggest thing to remember in the loss of the "full disclosure" portion of the representation, is that all material facts about the building still are legally required to be told, so anything either agent in a designated agent situation knows, must be told to all parties, it is really only about personal issues (like a divorce) or about price that cannot be disclosed.....
0 votes Thank Flag Link Sat Mar 31, 2012
Dual agency is when an agent is working for the buyer and also the seller.

When our office lists a property for sale, the seller signs an agreement
to say you may put my house on the market and I realize that if
you bring in a customer that likes my home you will be working
for me and the buyer as a dual agent.

If you are our buyer in this situation you would also have to
sign a dual agency agreement to agree that you know that
I will be working for you and the seller to put this transaction
(buying of the home) together.

Hope that is clear for you...any other questions, call me 860-643-9505
at home now or office later 860-647-8000.

Anne Miller
0 votes Thank Flag Link Sat Mar 31, 2012
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