Dual agency occurs when the same broker represents both parties in a transaction, whether it is the buyer and seller or the tenant or owner. “Designated Agency” means a multi-representation relationship in which each client of the law firm in the multiple representation relationship receives negotiation services from the firm only from licensees who are affiliated with the firm and do not provide trading services to other clients of the firm in connection with the transaction. According to Wisconsin Real Estate Practice Law. Illegal. A licensee may not represent both customers as a dual agent in the context of TRELA revisions. Pro Texas Real Estate Commission. Still other states, such as Oklahoma, assume a neutral agency and treat brokers as transaction brokers, unless there is a representation agreement. Agents are deemed not to represent the seller or buyer until there is something in writing. At the state level, dual agency can mean different things. When real estate agents talk about double® agency – especially in a negative context – they often talk about a transaction in which an agent represents both the buyer and the seller, also known as the “double end” of a transaction. However, another common form of dual agency occurs when two agents from the same broker or company represent both sides of the transaction. Depending on the jurisdiction, it is sometimes a designated body or a designated body and is generally less controversial.
Dual agency law varies from state to state, so it`s important to read and understand your state`s laws. Some states don`t exactly define their position on agency laws, while others do, so keep that in mind when you read below. Here are the 50 states and their dual agency laws: “The first thing I do in a [dual agency] situation is disclose it,” Britten says. “I have a relationship of trust with my customers, whether they are buyers or sellers. If I know or suspect that there is something that needs to be confidential, I first make sure that I am legally authorized to maintain the client`s trust, and if I am, then I keep it. Many states also have the status of transaction broker, also known as agentless intermediary, pure client agency, non-interim or intermediary relationships. These brokers have no fiduciary duty to buyers and sellers and are instead essentially transaction managers who facilitate the process for both parties but do not provide advice. Mr. Buyer, I don`t want to scare you, but buying real estate in Alabama is different from almost every other state and you need to be aware of the laws that might affect you financially.
Alabama law requires all real estate agents to share critical facts with all consumers who are considering buying or selling real estate in Alabama. First of all, Alabama is a Caveat Emptor state that puts full responsibility on the buyer when buying real estate in Alabama. The State understands the extent of the responsibility imposed on the buyer to know all the facts about one or more particular properties before drafting an offer. Similarly, the state understands that all consumers have the legal right to be represented by a licensed professional real estate agent when buying or selling real estate in Alabama. A disclosed double agent is a licensee who acts for both the seller/lessor and the buyer/tenant in the same transaction with the knowledge and written consent of all parties. According to the New Hampshire Consumer Information Guide. Definition: Dual agency occurs when a real estate agent represents both the buyer and the seller in a transaction. A dual agent cannot disclose confidential information to both parties and must be neutral towards both parties. In most states where dual agency is legal, written consent is almost always required.
Retta Ripperger, CRS, a real estate agent at R Realty in Creston, Iowa, found that because she operates in a small town and many of her clients know her or people who can vouch for her personally, dual agency is rarely a problem with her clients. All property licensees must disclose the different ways in which a consumer can be represented by an agency as soon as possible. This should be done during the first contact between the representative and the consumer. In many cases, however, this happens later in the relationship and by then, the damage may already be there. I do not know if some officers are afraid to reveal this information, or if they understand it well enough to explain it to other people. In both cases, secrecy can be very detrimental to the consumer. What do you think of the double agency? Post your comments in the We Are CRS Facebook group. “Whatever happens, when listing a new property, an agent inquires about their client`s motivations, goals, and plans,” says John Stark, CRS, an associate broker at Iowa Realty in West Des Moines, Iowa, who has served as a dual agent in many transactions over 15 years old, but now prefers to refer potential dual-agency transactions. “When dual agency comes into play, this knowledge can create an implicit bias against the original client.” Unfortunately, not all states recognize a designated body. One such state is Alabama, which prompted Sandra Nickel, CRS, founder and CEO of Hat Team REALTORS® in Montgomery, Alabama, along with other specialists in the dual agency, to make a strong case for its legal adoption. .
