I had lunch today with a client who just made a half million dollar offer on a piece of property. We were joined by some of his family members and eventually the conversation turned toward the offer and potential purchase of this property. I have worked with this client on real estate deals in the past and during our luncheon conversation, I casually asked him if he would be hiring the agent he has worked with in the past to represent him on this deal. I even went as far as to say, "you didn't sign anything right?." Long story short, my client's mother-in-law commented that the seller's agent is a neighbor and life long friend of my client's wife's family. After I delivered a brief spiel about the problems inherent in dual agencies, I realized I should be polite and drop the subject.
Just now, out of curiosity I googled "dual agency" and went to the first link. Read it. The results are telling.
http://www.realestatelawyers.com/Dual-agency.cfm
Showing posts with label dual agency. Show all posts
Showing posts with label dual agency. Show all posts
Monday, October 6, 2008
Sunday, September 14, 2008
Buying a House? Beware of the dual agency.
If you are buying a house you need your own agent. A real estate agent is either a buyer's agent or a seller's agent.
Almost everyone who buys a house generally goes through a broker. Many times, an agent working for the broker (i.e. Prudential) represents both the buyer and the seller. This arrangement is called a "dual agency". I don't like the dual agency situation at all. Many of my clients sign a dual agency agreement without understanding what it means. The agreement is generally a boilerplate form that is full of fine print and legalese that my client does not read.
In my opinion, if you agree to a dual agency, you do not have an agent because your agent represents both the buyer and the seller. An agent is your personal advocate and he or she should work for you exclusively!
If you are buying a home or land you should consult with a real estate attorney before you do or sign anything.
Almost everyone who buys a house generally goes through a broker. Many times, an agent working for the broker (i.e. Prudential) represents both the buyer and the seller. This arrangement is called a "dual agency". I don't like the dual agency situation at all. Many of my clients sign a dual agency agreement without understanding what it means. The agreement is generally a boilerplate form that is full of fine print and legalese that my client does not read.
In my opinion, if you agree to a dual agency, you do not have an agent because your agent represents both the buyer and the seller. An agent is your personal advocate and he or she should work for you exclusively!
If you are buying a home or land you should consult with a real estate attorney before you do or sign anything.
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