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Mr.P, Other/Just Looking in Arizona

Dual Agency.. What have you found to be the best way to Handle it?

Asked by Mr.P, Arizona Thu Jul 19, 2007

OK I like to ask tough questions. I have only expericenced one dual agency. We sat buyer and seller down at one table. After 90 minutes everyone was happy and we had a deal. In my opinion buyer wanted to buy and seller wanted to sell. I feel we were lucky, because there were no conflicts. Is there a better way?

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Patrick - Sounds like it worked out well for you.

Our broker has a disclosure form that we must have both buyer and seller read and sign. The form covers fiduciary responsibilities, ethics, and legal. If one or the other party feels uncomfortable with the arrangement.......our broker suggests we recommend another agent step and represent the uncomfortable party, with the concurrence of that party.

In most cases, after full disclosure, both parties feel comfortable and agree to sign the form.

Under Arizona law, the representation described above is legal.........the key being full and fair disclosure.
0 votes Thank Flag Link Thu Jul 19, 2007
I avoid it if at all possible. If I pick up a buyer off an open house, showing, etc, I will let them know that my allegiance is to the seller. I promise to treat them fairly, but that I will represent the seller only. If they want to be a client rather than a customer, however, I suggest they seek a buyer's agent to represent them. I don't like giving away commission, but I dislike the perceived conflict of interest even more. There are two dual agency situations I am comfortable handling. One is when past clients are interested in one of my listings. I have worked with all parties, and they are secure in the knowledge that I will honor the restrictions imposed on a dual agent. They know that my role is more of a mediator and less of an advocate in such a scenario. The other situation, which crops up all the time in large companies, is when another agent from the same brokerage represents the buyer. Even though the designated broker represents both parties, there are still two agents involved.
Web Reference: http://RayandPaul.com
1 vote Thank Flag Link Thu Jul 19, 2007
Duel Agency is easy to deal with, Give up 50% of the buyer side to another agent in your agency and do the sale, this takes away the accusation or possibility of such because you allowed another agent to monitor and guide the seller side of the sale! Here in Florida we a Transaction Broker status so Duel agency does not apply so we can do both sides of the sale without a bother!
0 votes Thank Flag Link Tue Jun 21, 2011
I avoid dual agencies, but it sounds like you did the right thing for your first one. I don't think that there is any method that works well for all. I think that dual agencies will work in most situations where everyone is upfront and the Realtor takes reasonable care. There are situations where Realtors should walk away.
0 votes Thank Flag Link Tue Jun 21, 2011
Just make sure you go out of your way to disclose and to just stick to the material facts. This should keep you out of trouble should you decide you want to go down this road
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Wed Dec 12, 2007
I work for the #1 brokerage in Phoenix, and as such, dual agency happens a fair amount. It's not a 1 time thing every few years, but a frequent thing every year. to that end, I start every new client relationship with a discussion about the high probability of dual agency. I then disclose my limitations, so that they are aware of them in advance, and not as a gotcha. I also have the types of conversations that dual agency limits me from having, before the dual agency ever happens, most notably, discussions about price. I always tell my sellers never to disclose to me their bottom line price (unless there are special circumstances), and I inform buyers that I can't advise them to any specific price other than the listing price, but that I can provide them comparables for them to draw their own price conclusion.

As to sitting everyone down at the same table, that seems extreme, and often too difficult to arrange.

I've found that all of my clients are very happy to have me represent both sides, or to have my company represent both sides. They want to sell or buy, and they don't care that much about the limitations.
0 votes Thank Flag Link Thu Jul 19, 2007
Hello,

In Florida Dual Agency is illegal! What we do have is a transaction brokerage relationship where by both the buyer and the sellers need to sign and agree to informing them of the representaion that they receive.

Good Luck,
Linda J Sears
0 votes Thank Flag Link Thu Jul 19, 2007
I make a general (with the exception that there may be an exception out there) rule not to do Dual Agency. Period.
0 votes Thank Flag Link Thu Jul 19, 2007
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