An agent should always disclose all the facts that may affect the transaction. If he or she knows that a new road will be built on the other side of the garden wall in a few months, he or she should inform the buyer. However, it is not very likely that you will enter into a double agreement with an agent. More complicated forms of the duale agency can also occur. For example, if Betty Smith represents a client as a listing agent and finds him as a buyer for her home, then signs a list contract with the buyer to help her sell her home so she can buy the offer. If you sell a house, it`s a no-brain. Never let your agent practice an agency alternately. Your agent should always represent you. You pay your agent thousands of dollars to serve your interest.
There is no good reason for the agent to be a neutral party. For example, if Betty Smith, an agent with the Smith brokerage firm, lists a house for sale on Main Street and another Smith Brokerage agent, John Doe, makes an offer on behalf of a buyer, Smith Broker acts as a dual agent. The company will benefit from both objectives of the agreement. Some real estate agents will try to trick you into accepting a duale agency by offering a commission discount. Do you want to save a few thousand dollars in commission just to make the colossal mistake of overpaying ten thousand dollars or more? A typical myth of the realtor is that it is a clever tactic to go directly to the agent of the list. It`s not true! There is one person who benefits from the dual agency agreement, and that is the agent. These are the „Bocks,” and an agent who enters into a dual agency contract will earn more money. He or she is rather the seller to prefer and keep the price high. As Michael Douglas said in the 1987 Wall Street film, „[Greed] is good.” This can only be the case for the double agent. The obligations of agents of real estate professionals are enshrined in state, contract, law enforcement and licensing laws.
Therefore, real estate agents must fully disclose the relationships between two agencies and all parties must understand the conditions and give their full and explicit consent to remain compliant with the law.