In most real estate transactions, two agents are involved -- one representing the seller and one representing the buyer. However, there is another, less common situation where an agent represents both the buyer and seller in the same real estate transaction. This is known as a dual agency arrangement. Dual agents must exercise caution in order to remain neutral to the buyer and seller, and they cannot disclose confidential information to either party. Before you decide to work with a dual agency, learn more about what a dual agency relationship is, the pros and cons, and how it can affect buying or selling a home. Using Dual Agency Realtors When Buying a Home How does dual agency work? In some cases, double agency may occur. For example, buyers may find themselves in a dual agency situation if they want to purchase a home where their real estate agent is also representing the seller. This is most likely to happen in smaller cities or towns where realtor inventory and quantities are limited.
Double agency can also occur if an agent is hosting an open house and meets a buyer who is interested in purchasing a home. If the buyer doesn't already have a real estate agent, they can ask the seller's agent to also represent them in the transaction. In both cases, if the buyer and seller agree that the same real Kuwait Email List agent can represent both parties in the transaction and sign the necessary documents, that real estate agent becomes a dual agent. Finally, and most often, a type of double agency can occur if the buyer and seller have different agents who both work for the same brokerage or real estate company. This is often referred to as appointed agency, and it is considered more ethical than single-agent dual agency because both the buyer and the seller have separate agents to fulfill their fiduciary responsibilities.
Dual agency is illegal in some states Due to potential issues surrounding dual agency, not every state allows a single agent to work on both sides of a real estate transaction. Here are the states where double agency is illegal: Alaska Colorado Florida Kansas Maryland Oklahoma Texas Vermont All other states not listed above have different double agency laws so check yours before signing a dual agency agreement State regulations are very important. However, in all states, realtors must disclose to their clients that they will be representing both parties in a transaction—they cannot represent both a buyer and a seller without their knowledge. You can do this by digging a trench from the center of the pit outwards.