First, let me say that I work for a brokerage that does NOT allow dual agency, but does allow designated agency.
Second, let me say that I work in a state which does allow dual agency, if it is disclosed on the contract to all parties.
But, as I look at the landscape, I see something I don't like. I don't like the idea of dual agency. And, further, I think it is time that the NAR step up and stop the practice among its members. I don't want to see the government take the lead, and I don't want to see any law passed. I want OUR trade organization to voluntarily stop this practice, and then tell the world that they have done it, and why.
As a person with of the libertarian persuasion, I don't like to see the government constantly stepping in to the relationship between service providers and the clients/customers. In fact, I think that licensing requirements for real estate agents should be relaxed or eliminated... but that is for another blog post (please save the comments on licensing for the post I'm sure will follow soon).
But, as a REALTOR, which promotes the ethics of its members, I can't see a way to reconcile dual agency with fiduciary responsibility. How can we represent two opposing parties and keep both of their best interests at the forefront? Obviously, we can work towards a win/win situation, and personally I try to do that anyway. But, when push comes to shove, and when a problem arises, what is good for one party will often be bad for the other. If there is a financing problem, and the buyer needs more time, but the seller may be better served to move on, or there is an inspection problem, and the buyer should move on, but the seller needs THIS buyer, the agent WILL be in a position that requires them to pick which party they are going to truly represent.
Obviously, we go through many transactions that don't have these issues. In fact, the majority don't have issues. But, the point is that I seldom get a memo at the beginning of a deal saying that I am entering a troublesome situation. Usually we only know we have a problem when we are in the midst of stepping in it. At that point, if we are "representing" both parties, we already have a problem. What does one do then? Pick a side and call another agent in to help? But, the original agent already knows more than they should about the other party. Not a good solution.
The bottom line is that if we, as REALTORS, are to truly serve our clients needs above our own, we need to begin by not allowing dual agency among our ranks. Then we need to spread the word that REALTORS are leading the charge for ethics in real estate transactions.
Walk the talk.
I look forward to your ratings and comments.
Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2012 Lane Bailey.
I'd love to hear from you...
Dual dudes and dual dudettes dipping in double deals.
Follow the $$$$$.
If it didn't pay so well, it wouldn't be legal.
Lenn,
I don't have a problem with double dips. I have a problem with having contracts with both sides of a sale that say you are obliged to represent each to the best of your ability, and above all others. Basically, one person will have trouble serving two masters as soon as the needs of one collide with the other.
Maybe everyone isn't comfortable in the role of a Transactional Broker but I don't have a problem with it. You are quite right about not receiving a memo up front that a transaction will be problematic but fortunately I haven't run into any problems.
I'm in Florida aka sue-me state and I am careful not to cross the wrong lines. My position is made clear to all - an expediter to get the transaction to the closing table. I keep it simple with communication and steering clear of withholding material facts from either party.
I wouldn't want any laws or rules made that would prohibit me from acting as a transactional broker. Like I said maybe everyone isn't comfortable with wearing both hats but I am.
Great post! Please contribute to my dual agency blog article at http://activerain.com/blogsview/579085/The-True-Test-of
Thanks,
Christina
Christina - Done.