Frequently Asked Questions
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What is Dual Agency? |
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My answer is a direct quote from the booklet published in 1986 by the National Association of Realtors (NAR), "Who Is My Client?, A Realtor's Guide to Compliance with the Law of Agency." To date the National Association (who conveys the term "Realtor") has not disavowed these quotes. |
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What is Single Agency? |
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An agent practicing Single Agency real estate represents only one party (principal) in a transaction. He or she is employed in writing by that principal and is paid by the principal. Here's what the National Association of Realtors (NAR) says on
page 16 of its 1986 booklet, "Who Is My Client? A Realtor's
Guide to Compliance with the Law of Agency." Translation: When the Redlands firm of XYZ Realty, Jones has a listing agreement on a property in Redlands and the Perris office of XYZ Realty, Jones brings in a buyer for that listing, a dual agency has been created. The Seller is that company's client. The Seller wants the best price and terms; the Buyer wants the same. XYZ Realty, Jones' agents cannot get the same for both. |
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Why do I need Single Agency? |
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You may not: You only need Single Agency if you think agency is important and you need assistance and/or representation in accomplishing your objectives from someone who has above average real estate knowledge and is exclusively committed to benefiting and protecting YOUR interests through Single Agency real estate representation. |
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What can a disclosed dual agent do besides take orders, run errands, carry messages and play chauffer? |
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Nothing, because any suggestion of advocacy to one party would be a breach of the agents fiduciary responsibility to the other party. |
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Are there other risks in dealing with a dual agent? |
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Since a dual agent has direct access to both buyer
and seller and the dual agents income from this transaction
will DOUBLE if they can close the deal, who’s
interest will be foremost in their mind? This is a multiple choice question. You choose. 1) Seller 2) Buyer 3) Agent |
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Will Single Agency save me $$$? |
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Hopefully, since you have an advocate
working solely for your interest. A dual agent cannot ethically negotiate in your interest without violating his/hers fiduciary responsibility to the other party. |
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Will it save me time or get me a better deal? |
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It can, particularly if you are an investor in commercial property. Unlike the residential MLS system (1 to 4 units), which is mandatory for members to place their exclusive listings, this rule does not apply to commercial property. Frequently the best commercial investments are either Open Listings or not on the market. When you employ a Buyers Broker under a written employment agreement and agree to pay his or her fee then it opens up the entire marketplace for you. |
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Are you hoping to outlaw Dual Agency through legislation? |
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Absolutely not. Large firms cannot handle Single Agency as we defined it. They should be able to continue business with their present system. |
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Does organized real estate (NAR) recognize Single Agency? |
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Our definition dates back to 1980. In the mid 1980's they redefined the term by saying that agents should represent either Buyers only or Sellers only. This was and is an impractical approach and was an attempt to defeat us. While it muddied the water and added confusion to the agency issue, it didn’t defeat us. |