What is Dual Agency?
Dual Agency is a real estate transaction is when the listing agent will represent the buyer AND the seller. A real estate agent entering a dual agency is obligated by law not to share confidential information that could give either party involved in the transaction an unfair advantage. Dual agency also occurs when the agent representing the buyer is employed by the same broker as the listing agent.
Is Dual Agency legal in California?
Yes, dual agency is permitted under California state law. A listing agent can represent a buyer, but only under the strict guidelines laid out by the California Department of Real Estate. Undisclosed dual agency, where the agent purportedly acts in the interests of both the buyer and the seller without notifying either party is not only a serious breach of ethics, but is also illegal.
Agents entering a dual agency relationship with their clients need to properly disclose it in their Agency Disclosure forms. It is up to the client or the client’s TC (transaction coordinator) to make sure they have all the disclosures in order.
Most real estate firms have strict internal policies that outline the procedures for handling dual agency transactions. Some of the larger firms won’t even handle dual agency transactions because of potential liability issues.
What is Team Aguilar’s Policy on Dual Agency?
New clients often ask us if we practice dual agency – the answer is a resounding “NO.” Whether you’re buying or selling, a Team Aguilar agent will ONLY represent your interests to make sure you get a favorable resolution to your real estate transaction.
In the rare, unavoidable cases where we do get into a dual agency situation (yes folks, it does happen) we act under the rules of the DRE. We will represent both clients at the highest legal and ethical standards in a manner that is fair and equitable to all parties involved in the transaction.
Here is a video I recently created about real estate dual agency and why I do not think it does any good for the buyer or the seller.