Posted by Rich-CA on June 11, 2008 at 07:03:31:
By most state laws, an agent represents the seller unless you have a buyer’s agreement with them. When an agent also represents the buyer, he really represents the seller. The dual agency agreements I have read all say basically that the agent represents both parties and will not advise you on your transaction. There are a whole bunch of disclaimers that boil down to “you’re on your own”.
Dual Agency- Crooked REALTOR - Posted by Mike Hatemi
Posted by Mike Hatemi on June 10, 2008 at 18:43:48:
Hi,
I gave an all cash offer above listing price on a REO property with "as is condition. I used the Listing agent as my dual agent to get a better edge. Strangely enough I lost the deal to another bidder with a “lower all cash offer”.
I really do not understand why my offer got refused since I did not leave them any excuses to refuse me. This was a very good deal and we are still mad about loosing it. Upon asking the realtor, I figured that he was also a dual agent for the other bidder. I am pretty sure that the realtor is getting more than commission (illegal kickback from the other bidder) out of this but I cannot prove it.
Also is it illegal to be dual agent for two competing bidders with giving no disclosures?
How can he be watching out for the interest of two different competing parties? What can I do about this?
Call your RE Licensing agency - Posted by John Merchant
Posted by John Merchant on July 28, 2008 at 08:03:30:
You could get quick answers as to the legality of what this agent has done with a quick call to your state RE licensing agency.
This dual agency issue is one that’s bothered me for a long, long time…first time I ever heard of it, I was floored by the implications and astounded it was even being done.
How could Agent A represent you and me?
No way, I thought then and still think now.
Interestinly enough though, I have used it AGAINST an agent who offered, in another state, to represent me too, along with his selling client.
I accepted his being a dual agent and representing me because I knew the high fence he was straddling and figured it’d make him extremely cautious about how he did represent me…and it worked, probably better than if I’d had some half-way uninterested agent there just reprsenting me.
But as an Agent, no way would I undertake such a hobbling obligation and I think any REA who does is just not using his/her head.
Re: Dual Agency- Crooked REALTOR - Posted by Natalie-VA
Posted by Natalie-VA on June 11, 2008 at 10:17:06:
In Virginia, all parties must agree to a dual agency in writing. Even if the agent is representing the seller and not the buyer, they must give the buyer a written disclosure to that effect. I would try and make sure that the lender receives your offer, even if you have to go around the agent. If you find out that your offer wasn’t presented to the lender, you should report the agent to your state licensing board.
It is possible that they reviewed both offers, but the other one had better terms such as a quick closing with no inspections. As a seller, I recently rejected a cash offer where the numbers were good, but the investor/buyer didn’t provide proof of funds and didn’t sign the contract properly for his corp.
–Natalie