What is common law dual agency in real estate?

What is common law dual agency?

Legally speaking, a dual agent is a real estate broker, or agents working for the same broker, who act on behalf of both the seller and the buyer in a transaction. A broker is permitted to act as a dual agent in California only if the buyer and seller are both aware of and consent to the dual agency.

Is dual agency good for the seller?

The bottom line is that dual agency is certainly a good thing for the agent but is typically a negative scenario for both the buyer and seller, as neither party is getting fair representation. This is an especially negative arrangement for inexperienced buyers and sellers who really need professional guidance.

How do you explain dual agency?

Dual agency is a real estate term that means one agent or brokerage represents both the seller and the buyer in the same real estate transaction. A dual agent must walk a narrow path to be neutral toward both parties, and they may not disclose confidential information to either party.

Should I allow my realtor to be a dual agent?

To protect your finances and ensure you are selling or buying at the best possible price, it is probably best to avoid dual agency. Buyers or sellers may be inclined to work with a dual agent because they want to obtain confidential information about the person buying or selling the home.

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Is dual agency legal in all states?

Dual agency occurs when a buyer and seller let a single real estate agent (or two agents from the same brokerage) represent them in a transaction. Dual agency is illegal in eight states: Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas and Vermont.

Can I contact the seller agent directly?

Can buyers contact a listing agent directly? Technically—yes. The only people who may frown upon contacting a listing agent are buyer’s agents, who make their commissions based on representing buyers. But there is no law or rule saying a buyer cannot contact a listing agent.

Why is dual agency illegal?

Dual agency is when one real estate agent is on both the buying and selling sides of the same transaction. … Dual agency describes a situation in which the same real estate agent represents both the buyer and the seller. This creates ethical issues, and the agent’s own interests could end up taking priority.

Why does the seller pay the buyers agent?

Sellers factor in the cost of commissions when they price their homes. Typically, the listing agent and the buyer’s agent split the commission from the transaction. ‘The funds come off the seller’s side, creating the illusion that the seller pays,’ says Fred McGill of SimpleShowing.

Is dual agency ethical?

Is dual agency ethical? Dual agency is illegal in every fiduciary profession other than real estate (state laws allowing) because of the risks it creates. Therefore many folks outside and within the real estate industry view it as unethical.

Does dual agency save money?

Pro: You could save money

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If that agent is the same person, the commission fee might be less. “The broker may be willing to take a lower fee for representing both sides of the deal,” says Phil Lang, COO of TripleMint. And if the seller is saving money, they might pass some of that savings to the buyer.

What happens if dual agency is undisclosed?

If the dual agency is neither disclosed to nor approved by both parties to the transaction, undisclosed dual agent cannot recover any compensation, and a principal can rescind the transaction. Unintended dual agency can occur whether one or two brokers are involved.

Can agent represent buyer seller?

Dual agent – A real estate agent may act as a double agent representing both the buyer and the seller in a real estate transaction but only with both parties’ express consent. A dual agent shall be neutral concerning any conflicting interests of the seller and buyer.