So you’ve decided that you want to purchase a new piece of real estate in California. You contact the real estate brokerage office in your area and discuss the matter with an agent. Once you’ve laid out your interests in a home, the agent takes a whole day displaying numerous properties, a portion being sold at discounted prices with additional brokerage offices, and a fraction marked down by your agent’s brokerage office. In the scenario that you choose to purchase a house recorded with your agent, there’s a chance the broker’s company or your agent could wind up performing as a “dual agent,” playing on both your side and the seller’s in the transaction process.
An additional course that can lead to the presence of a dual agency is if you attend the viewing of a house prior to hiring an agent to depict you as a purchaser, then vocalize your desire for the property, and are informed by the seller’s agent that providing you with a proposal won’t be any issue--and may even be cheaper.
Prior to agreeing to any of these dual agency arrangements, you need to make sure you comprehend the legalities and its potential to alter your chance to receive the top offer possible when purchasing a house.
In most cases, the final desire of the seller to make the most money off of the property, in contrast with a buyer who wants to pay the least possible. So in what way can a dual agent efficiently play for the conflicting interests of both sides of the transaction. During some circumstances, using a dual agent is the most logical choice, but in others, you may feel that it would be best to have your own personal agent.
Dual Agent defined.
In legal terms, when a real estate agent represents both parties in a real estate transaction, it is known as dual agency. In the state of California, a broker is only allowed to perform as a dual agent if both sides of and agree.
In this state, when you operate in conjunction with a broker, your connection needs to be documented on paper. A large portion of brokers will provide with a file naming your real estate agency association prior to you completing a proposal on a property. This disclosure document names the agents and broker included in the deal. It further details the jobs of the agent of the seller, the agent of the purchaser, and the dual agent.
Discussed on the form, each agent has to give each user a unique fiduciary duty to follow through in what’s best for that individual. This involves a term to enact practicable handling and tactic in operating for the client, a term of acting with high moral standards, and a term to inform of everything that the agent knows could alter the worth or want of the home, and of which the customer does not know of, or would remain oblivious to after detailed analysis.
Understandably, an agent trying to perform for both sides comes with the danger of going against the fiduciary duty of carrying out jobs solely because they’re what's best for an individual client, due to them measuring out both parties desires.
Dual Agent Advantages.
We’ve listed some of the benefits of utilizing a dual agent who works for both sides, with them being:
Dual Agent Disadvantages.
It’s important to note all the dangerous aspects of hiring a dual agent as well:
You might feel a bit overwhelmed as utilizing a dual agency is a big step to be decided in a little amount of time-- but don’t allow this to affect your choice. There are still ways to obtain a buyer’s agent to intervene in the sales process and guide you through it in the span of a few hours.
Your final selection needs to also be made according to details of your specific transaction. For instance, in a thriving real estate scene where it turns out that homeowner is also being represented by your broker’s office (but collaborating with another agent), and you’re wondering how to beat the competition, and under the precedent that you’ve studied to the point of understanding the property's value, working in conjunction with a dual agency could be the most practical. But if you’re a new inexperienced buyer who isn’t well acquainted with the market and you come into contact with an enthusiastic committed agent during a house’s visiting period who's ready to construct a proposal, then it may be advised to stick with the single agent.
Woodland Hills Real Estate Agency
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Call at (818) 770-3660
Address: 22020 Clarendon St suite 200, Woodland Hills, CA 91367