Dual Agency: How a Real Estate Agent May Be Two-Timing You

By Matt Carter and
Andrea V. Brambila

Republished with permission from Inman News.

Homebuyers sometimes gripe that their real estate agent seems more interested in closing a sale and collecting a commission check than in helping them find the right home at the right price.

Sellers, too, may feel pressured by their broker to make price reductions or accept an offer that's less than what they'd hoped to receive for their home.

What buyers and sellers alike may not realize is that, in many cases, real estate brokers and agents actually have no legal obligation to look after their best interests.

Laws in 25 states now allow brokers to provide services to buyers and sellers as "transaction brokers" or "facilitators," without traditional fiduciary duties of loyalty and obedience.

All 50 states also provide avenues for brokers to "double end" a deal, working with both the buyer and seller in the same transaction and avoiding the need to split commission income with a cooperating broker. In such instances, neither the buyer nor seller is fully represented, critics say.