Understand The Role Of Dual Real Estate Agents PDF Print E-mail
Written by Karen Lissack   
Sunday, 20 June 2010 16:52
Many prospective homebuyers automatically assume that their real estate agent works solely to meet their best interests. While this is true in some cases, there are agents that are "dual agents" that look after both the interests of the buyer and the seller. There are basically two real estate agent classifications; the seller's agent and the buyer's agent. There are cases where one agent plays the role of both agent classifications. When this happens the agent is working as a dual agent. To provide a better understanding of this, we'll discuss both classifications further.
by KarenLissack


Many prospective homebuyers automatically assume that their real estate agent works solely to meet their best interests. While this is true in some cases, there are agents that are "dual agents" that look after both the interests of the buyer and the seller. There are basically two real estate agent classifications; the seller's agent and the buyer's agent. There are cases where one agent plays the role of both agent classifications. When this happens the agent is working as a dual agent. To provide a better understanding of this, we'll discuss both classifications further.

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.

If the buyer's agent is also working for the seller, this agent is a dual agent. Because a dual agent won't take sides, it's best not to share any kind of confidential information. There have been instances where dual agents have been sued for disclosing important, confidential facts. When you use this kind of agency, it's very difficult to get the highest selling price possible because the agent is also looking after the buyer's welfare.

There are some agents that prefer to avoid the possibility of conflict that can occur with a dual agency. They often prefer to work as a single agency depending on their client's needs. If the client is a buyer, the agent will fill the role of a buyer's agent and if the client is a seller, the agent takes on the role of listing agent. There are other types of agents that work for both of the parties, but have no strings attached. These agents are called transaction agents. The role of a transaction agent is to ensure that a transaction goes smoothly. This agent will also provide any necessary documents and paperwork for both of the parties.

If you plan to purchase a home and come to work with a dual agent, make sure to talk about his terms on how to represent both parties fairly. You can ask for references and talk to the agent's previous clients. It is important that they highly recommend the agent before finally making the decision.

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.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Karen Lissack has been reporting about real estate and home related topics for close to 15 years. She will help you with information in any aspect in real estate from buying to selling, even investing. She is fully informed about chapel hill real estate and has aided people in finding the best chapel hill homes in the market.