Home Selling in New Haven>Question Details

Sharon, Home Seller in New Haven, CT

After two weeks of negotiations, my listing realtor just told me that she is also the buyer's realtor. Should I rethink the Hubbard for this?

Asked by Sharon, New Haven, CT Fri Feb 17, 2012

buyer? My issue is that the proposed timeline/contract for the buyer extends thru the spring buying season and I do not see how the "dual agency" realtor will continue to show my house if she also represents the buyer. So, I think that in this case, the Hubbard works against me. Should I counter offer with the stipulation of no Hubbard? Any ideas or thoughts?

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15
You should have been informed up front by your agent that the buyer was also his/her client, or had asked him/her to represent them as well. It is then your choice as to whether you are comfortable with dual agency. All parties must agree in writing, and we have specific dual agency forms for this. If someone is not comfortable, then it is possible for another agent to be assigned to represent one party. This would be called designated agency. If that is not desireable then the buyer can find another agent of their choice to represent them. The fact that you were not made aware until two weeks into the negotiation is a serious legal and ethical issue.
Dual agency has potential for conflict of interest and even moreso with a Hubbard Clause offer. I, as an agent, would not be comfortable as a dual agent and would decline in favor of an alternative.
1 vote Thank Flag Link Tue Feb 28, 2012
Hello Sharon,

Was the offer negotiated verbally or it was presented to you in person/via email?
If the offer a verbaly low offer, f.e., and your agent just ran it by you as an option for a while (not even thinking you'd consider this offer) - and then, when everything firmed up, she presented the offer officially and disclosed her status with the buyer - this may not be a problem...

If this was not the case, then the proper disclosure was not done timely, and this needs to be discussed with your agent and her broker.

Re. the buyer - why would the property be shown to the buyer, if you are in contract?
Unless this is a short sale and you want receiving back up contracts, you should not be showing the house any longer.

Every realtor, who is both a listing and a selling agent, has to treat both clients fairly and ethically.
In most cases, it will work fine, as long as you are happy with the terms of your contract.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Apr 25, 2012
the realtor should have informed you in the begining. ask your attorney to help you negotiate, make the counter offer
0 votes Thank Flag Link Wed Mar 7, 2012
Your agent is legally required to inform both you and the buyer that she is in a "dual agency" situation. This should have been done at the time she presented the initial offer to you.
0 votes Thank Flag Link Mon Feb 20, 2012
In regards to the dual agency. It is legally required that both parties (buyer and sell) agree in-writing (aka Dual Agency Agreement) BEFORE any contracts are written. In my opinion there is definitely a breach of disclosure here and I would be very careful.
0 votes Thank Flag Link Mon Feb 20, 2012
I don't ever consider a hubbard unless the home is already under deposit. There is a good possibility that the home could be over priced and never sell.
0 votes Thank Flag Link Mon Feb 20, 2012
Dual agency has to be disclosed and agreed to in writing here in CT. If you don't feel comfortable with the dual agency you do not have to agree to it.
As far as the hubbard - depending on which contract you're using generally the home stays on market until the hubbard is resolved.
I am not crazy about hubbards myself at all, but that is my opinion as agent. It sounds like you really need to speak with your agent about this situation and if you no longer feel comfortable with your agent, I would recommend reaching out to the broker.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Mon Feb 20, 2012
I worked with a builder that loved contingencies, he told me they psychologically married a buyer to his home but still let him market the house. All of his contained contracts that contained such a clause had an out if he found another buyer. Not as easy for a seller with only one property to do. As long as you have an out if you find another buyer and an agreement that the status not be changed in the MLS as pending until the contingency is removed, it may work out.
0 votes Thank Flag Link Sat Feb 18, 2012
Sharon...I would definitely get the broker of your agent into the discussion...laws regarding agency differ from state, so anything an agent outside of CT may or may not be true for your state. The realtor in either event does have an obligation to disclose that she is working with the buyer.....hope this helps
0 votes Thank Flag Link Sat Feb 18, 2012
Not sure about the rules in Connecticut, but I believe they'd be similar to those in Illinois.

The agent is obligated to disclose that they're acting as a dual agent 'in advance', and need to get written permission from both parties. Otherwise it becomes 'undisclosed dual agency' which is a bad thing.

In negotiations, you have already allowed your agent to become privy to proprietary information about your situation... and clearly she was advising you (and the buyer)... the Hubbard Clause is the least of your worries here. In my opinion, you should contact the managing broker of your listing agent's office, and ask for another agent to be reassigned. This agent has behaved poorly, and who knows whether their advice was in your best interests, at this point, or not?

Get the managing broker involved. Your agent has crossed a line, that should not have been crossed.
0 votes Thank Flag Link Sat Feb 18, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
She's just telling you? It's supposed to be "Dual DISCLOSED". Not right!
0 votes Thank Flag Link Sat Feb 18, 2012
PS. Before your agent went into negotiations she had a fudiciary duty to disclose that she was also representing the buyer. At that point you had a choice to agree she represents both or ask the manager to assign another agent to represent you or the buyer. You should have had that discussion before negotiating and signed an agreement as to which you would prefer.
Web Reference: http://candylipirahomes.com
0 votes Thank Flag Link Fri Feb 17, 2012
You state that your agent, the listing agent, is also representing the buyer as well, Dual Agency. Since none of us have the particulars about either your property and the buyer's property, it's a difficult question to answer.
I would recommend you speak with the manager of your agent's office. One question: is your agent also representing the sale of the buyer's property as well? There could be room for negotiating the commission.

Ask the manager, based on their knowledge of your market and if they have knowledge of the market where the buyer's home is located, how quickly they feel the buyer's home will sell.

It has been my experience that Hubbards are not shown in general since it is under contract, tied up. How long is the buyer asking for the Hubbard to be in effect?

Again, too many unknowns to answer with any assurance and I recommend you speak with the manager.

Good Luck,
Candace Lipira
Keller Williams Platinum Properties
203-856-8501
candylipira@optonline.net
CT Licensced
Web Reference: http://candylipirahomes.com
0 votes Thank Flag Link Fri Feb 17, 2012
In today's market, you have to be awfully brave to allow your buyer to have a contingency to sell his/her current home. Don't do it unless you're absolutely sure your buyer can do so.

That's one issue.

Another one deals with dual agency. And while that's an overall concern, I think your worry in this case may be misplaced. Frankly, no agent is going to be enthusiastic about showing your home if there's a contract on it. Whether it's a dual agent or a pure buyer's agent, your home will be pretty much off the market--effectively, not literally--once you accept a contract. Besides, in most cases the listing agent also isn't the buyer's agent. So it's unlikely that your listing agent would encounter another buyer who'd be interested in your home.

My ordinary advice would be to consult with your agent on this. As you can see, though, the matter gets complicated when "your" agent is also representing the buyer.

And there's another question--the same agent is YOUR listing agent and the BUYER's buyer agent. Question: Who is the LISTING agent for your BUYER? That's the agent who might be able to give your agent an idea about whether your buyer will be able to sell his/her house. (And please don't tell me that it's the same agent!)

I'm not licensed in Connecticut and I don't know your situation or the situation of the buyer. However, I can say that I'd be reluctant to allow that contingency to remain. Only do so if you're 99% confident that the buyer's house will sell.

Hope that helps.
0 votes Thank Flag Link Fri Feb 17, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Sounds like you're not comfortable with the dual agency issue, and to be honest I am not a fan of it. Tell her you do not agree to it. I know in VA that is an option of anyone - everyone is entitled to their own agent. Tell her you want to have separate agents so you can have the agency representation you're paying for. This is the kind of market where that is understandable.
0 votes Thank Flag Link Fri Feb 17, 2012
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