subject: Understand The Role Of Dual Real Estate Agents [print this page] Most prospective homebuyers think that their real estate agent is working exclusively for their interests. In truth, there are agents that are considered as "dual agents" who also look after the seller's interests. Basically, there are two classifications of a real estate agent: the buyer's agent and the seller's agent. In cases when the agent plays the role for both classifications, then he is considered as a dual agent. To understand further, let's discuss the two classifications.
A real estate agent that represents only the buyer is called a buyer's agent. On the flip side, if an agent is working solely for the benefit and welfare of the seller, he or she is called a seller's agent or listing agent. This sole representation is often described as a single agency. Agents with these classifications act on their clients behalf. They would never give any confidential information to the other party. Single agency agents are expected to deal with their clients with total honesty when laying out the facts and progress of any transaction.
When a buyer's agent is also working for the seller, this agent is a dual agent. Because this agent won't take sides, you should never share confidential information with the agent. There have been cases where dual agents have been sued for disclosing confidential information. When you go with this kind of agency, its very hard to get the highest possible selling price as a seller because the agent is also looking out for the buyer's welfare.
There are agents that avoid the possibility of conflict that can arise with a dual agency. Depending on the client, they often prefer to perform on a single agency. If the client is a seller, the agent will be the listing agent and if the client is a buyer, the agent becomes the buyer's agent. There are some agents that work for both sides without having any strings attached. These are called transaction agents. These agents don't look after the best interests of either of the parties. The role of a transaction agent is to make sure the entire transaction goes smoothly, usually providing all the necessary documents and paperwork for both of the parties.
If you are purchasing a home and find that you're working with a dual agent, be sure to discuss his terms on how he will represent both involved parties fairly. You can and should request references and call some of the agent's past clients. You want to be sure the agent is highly recommended before making any decisions.
Find out if this agent is an active member of the National Association of Realtors or NAR. This organization requires its member to follow a strict code of ethics. Most states require agents to provide both a seller and a buyer with a disclosure form. This form defines the agency and its nature. Carefully read the entire form, making sure you understand all the details of it before signing any kind of agreement. While you will undoubtedly be working closely with your agent, it doesn't hurt to research the home prices in the area on your own. This will allow you to determine whether or not a property is fairly priced.
