A “dual agency” relationship occurs when a buyer is represented by a brokerage firm controlling the listing. Once an agent represents the seller and the buyer within the same transaction, the situation is known as “dual agency.” In multiple states, this is illegal because of the conflicts of interest that can arise regarding the broker. Even in states where allowed, the dual agency must be disclosed and consented to by all parties involved. This arrangement can create potential conflicts of interest, and buyers should be fully aware of these implications before agreeing to a dual agency. All agents have the same responsibility: to inform their clients of all potential risks that could arise due to conflicts of interest. Regarding dual agency, there are definite advantages for the seller. • We have already gained the trust of your listing agent, so we have established representation for the buyer. • Your agent brought you the buyer knowing you’re selling, even if your property has not yet hit the market. • Your listing agent will have already covered and researched your neighborhood’s market to generate buyer inquiries. This means your agent will be working from all sides of the deal to sell your house faster and with more incentive. • Your agent works with corporate relocation buyers who need to find a house quickly, and they will ensure that your home is bought. There are also cons for the seller when it comes to dual agency, and they are:
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