Seller’s Agent
A Seller’s Agent is hired by and represents the best interest of the seller. The relationship usually is created by a listing agreement.
Buyer’s Agent
This type of licensee is hired by prospective buyers to represent them in a real estate transaction. The buyer’s agent works in the buyer’s best interest throughout the transaction. They buyers can pay the licensee directly through a negotiated fee, or the buyer’s agent may be paid by the seller or by a commission split with the listing broker.
Designated Agent
This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as representatives of the seller and which will act as representatives of the buyer. The designated agents give their respective clients full representation. The broker has the responsibility of supervising both groups of licensees.
Disclosed Dual Agent
Dual agency is a relationship in which the agent represents both the buyer and the seller in the same real estate transaction. Dual agents typically owe limited duties to each parties. Because of the potential for conflicts of interest in dual agency relationship, it’s vital that all parties give their informed consent. In Illinois, this consent must be in writing. Disclosed dual agency, in which both the buyer and seller consent to the agent representing both of them is legal in most states.
Just wanted to get this out there for most of my first time home buyers. It gets confusing when we get away from Seller’s and Buyer’s agent. I am not a fan of Dual Agency. Are responsibility to both parties is stripped down and it just doesn’t serve anybodies best interest. The Designated Agent would be the way to go instead of Dual Agent in my opinion. Let me know if you have any questions.
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2 users responded in this post
I have a question on dual agent situations. We have a situation where we are entering an offer on a place where there is another offer from another buyer who is represented by the sellers agent in a dual agency role. Is this even ethical or legal. It would seem to me that the sellers agent would need to pick one party to work with otherwise they would have additional information that we wouldn’t. It just seems kind of dirty.
Wow! That is not a good situation….for anyone. I can’t imagine being the agent and actually wanting to move forward. One option I would suggest is to let the seller know that you are not going to present any offers unless the other buyers are represented by someone else. If that doesn’t work you can call the sellers agents managing broker and explain the situation. Dual agency is something I try to avoid every time and this one just screams trouble. Let me know how things work out.
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