The agent in a dual-agency situation becomes a referee rather than a coach. “The agent cannot disclose confidential information to either party and must act in a neutral position during the transaction,” said Emily Matles, a New York agent at Douglas Elliman. Matthew Berger, another New York agent at Douglas Elliman, said, “When the listing agent enters the role of double agent, he cannot give advice to either the seller or the buyer.” On the other hand, if you have an independent agent, “you`re more likely to be the benefits of a client receiving fiduciary benefits,” Ailion says. Dual agency can cause legal problems because real estate agents are bound by fiduciary duties. These tasks require unwavering loyalty to their customers. A buyer`s agent must act in the buyer`s best interest, and a seller`s agent must act in the seller`s best interest. A dual agent would demand loyalty to both sides of the negotiating table – a delicate, if not impossible, task. As a customer, you have the right to refuse representation by a double agency, even if the clause is presented to you in a standard real estate advertisement or buyer`s agency contract. You can hire another broker to represent you if you are not comfortable with a dual agency contract. Because a dual agent works in a potential conflict of interest situation – one client (the seller) wants to get as high a price as possible while the other client (the buyer) wants to pay as little as possible – the agent cannot take sides or give advice. Bruce Ailion, a real estate agent and attorney from Atlanta, Georgia, compares the dual agency to a lawyer who represents both husband and wife in a divorce.

“The interests of the parties are detrimental and are better represented by independent professionals,” he says. Dual agency occurs when the listing agent and the buyer`s agent are identical; This can also happen when both work for the same brokerage firm. Since the brokerage benefits from both sides of the transaction, the broker`s relationship with the buyer and seller determines the dual agency. For example: A listing agent may know that their customers are desperate to sell. If the buyer`s agent finds out, he can inform his clients of their additional bargaining power. .