A disclosed dual agent
WORKS FOR BOTH THE BUYER AND SELLER. To work as a
dual agent, a firm must first obtain the informed
written consent of the
buyer and seller. Therefore, before acting as a
disclosed dual agent,
brokerage firms must make written disclosure to both
parties. Disclosed dual
agency is most likely to occur when a licensee with a
real estate firm
working as a buyer's agent shows the buyer properties
owned by sellers for
whom that firm is also working as a seller's agent or
sub-agent.
A real estate licensee working as a disclosed dual agent
must carefully
explain to each party that, in addition to working as
their agent, their
firm will also work as the agent for the other party.
They must also explain
what effect their working as a disclosed dual agent will
have on the
fiduciary duties their firm owes to the buyer and to the
seller. When
working as a disclosed dual agent, a brokerage firm must
have the express
permission of a party prior to disclosing confidential
information to the
other party. Such information includes the highest price
a buyer can afford
to pay and the lowest price the seller will accept and
the parties'
motivation to buy and sell. Remember, a brokerage firm
acting as a disclosed
dual agent will not be able to put one party's interests
ahead of those of
the other party and cannot advise or counsel either
party on how to gain an
advantage at the expense of the other party on the basis
of confidential
information obtained from or about the other party.
If you decide to enter into an agency relationship with
a firm which is to
work as a disclosed dual agent, you are advised to sign
a written agreement
with that firm.
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