How do you explain dual agency vs designated agency to your clients?

Although each state has different real estate laws, generally speaking dual agency occurs when a single agent represents both the buyer and the seller in the same transaction. Because a licensed Realtor is required to have their clients best interests at heart at all times this essentially turns the agent into an intermediary who can only pass forms back and forth between the two clients because giving an opinion would harm the best interests of their other client. This is in no one’s best interests. Designated agency occurs when the buyer and seller are represented by different agents who happen to be from the same brokerage. Since the clients are represented by different agents the agents are able to give all advice as needed.

In some states, dual agency is illegal. In all cases where it is legal, it is only legal if disclosed to the clients. Educating your clients is key to a successful dual agency transaction. And even when it is legal, some brokerages have rules or extra paperwork to document that the parties are aware of the limited representation offered in dual agency situations. Know what your broker will and will not allow.

When a real estate broker has encouraged his/her sales reps to induce consumers to use the brokerage as the consumer's agent, why would anyone expect that broker to follow the required disclosure and consent for dual agency? The broker has already shown their hand by encouraging misleading advertising (aka fraudulent misrepresentation). The broker is availing their license, plain and simple. Re designated agency, could someone explain how it's possible for a broker to authorize an employee to do something that would be illegal for the broker to do themselves. I don't get it.

Dual Agency is illegal in my state (Colorado) and many others. In those states, it is illegal because it is considered to be a conflict of interest.

There is also instances when two agents represent one party, creating dual agency. This can be common and appropriate when two agents represent one seller/ listing.

Dual agency benefits ONLY the agent. How can one agent represent the best interests of opposing parties? And please, spare me the "win-win" blather; this is business. Any buyer or seller that allows this has not had it fully explained or isn't thinking straight. As for the agents that practice it - shame on you.

>>Since the clients are represented by different agents the agents are able to give all advice as needed.<< But, the Broker is still acting as a dual agent. This is still not an ideal situation.

So much misinformation in these posts. Dual agency is when the brokerage firm engages in the impossible relationship of representing two adversarial clients and gets a double commission in exchange for doing so. Designated agency is an imaginary relationship in which the supervising broker is still a dual agent and the agents are supposedly providing exclusive representation to their clients. All of it is dual agency. Dual agency is one of the worst betrayals that can be employed against a client. It's illegal for attorneys and the only reason it is legal for realtors is because of their powerful lobby.

Given the number of times I've brought civil actions against "dual agents" I can say I absolutely do not recommend it. The real estate industry has seen many ups and downs over the past 4 plus decades. Surprisingly, again in my own experience, I've seen the role horribly abused when the market is hot and loans are closing quickly. Dual agency practically means having competing interests in a single transaction. If it's not something you can opt out of then the key can be summed up in three things. 1: Disclose 2: Disclose 3. Disclose Get everything in writing and always give your clients the actual time to read their documents.

The "caring" agent collects both commission sides and double the "volume". That is the positive (for them). There are no positives for buyer and seller, only a lengthy list of potential disasters. This should be illegal in all states - and this one reason why agents have reps lower than whale turds.

Dual agency occurs when a real estate agent represents both the buyer and the seller in the same transaction. This is legal in some states, but must be disclosed to both parties in writing, and the agent must remain neutral and impartial throughout the transaction. Designated agency, on the other hand is when a brokerage firm designates specific agents to exclusively represent each party in a transaction. Each agent owes a fiduciary duty to their client and cannot share confidential information with anyone else in the transaction. The main difference between the two is that dual agency involves one agent representing both parties, while designated agency involves two separate agents representing each part exclusively.

I don't know how any agent with any degree of professionalism or ethics would even try to do this to their client. Exceptionally unprofessional.

JUST DON'T DO IT. Respect the profession, the clients and yourself. There is absolutely no reason - other than self gain - to do this.