By submitting your contact information you agree to ourTerms of Useand ourPrivacy Policy, which includes using arbitration to resolve claims related to the Telephone Consumer Protection Act.!
NMLS #3030
Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.
If a sign-in page does not automatically pop up in a new tab, click here
As discussed below, a dual agent, attempting to act on behalf of both parties to a sale, risks violating the fiduciary duty to act only in the best interest of one client, because the agent might have to balance the interests of both clients.
The dual agent pockets more money –– but the seller walks away with less. The unacceptable risk of a lower selling price is why a home seller should almost always avoid working with a dual agent.
Dual agents can streamline the home sale process, helping you sell your home faster and with less hassle. However, since they represent the buyer too, your real estate agent may not be willing to negotiate a higher price with the buyer.
Why an “exclusive” agent is best. The easiest way to avoid dual agency is to hire a real estate agent who always works in a “single-agency capacity.” If you're a buyer, hire an agent who exclusively works as a buyer's agent, never a seller's agent. If you're selling, seek out an agent who exclusively represents sellers ...
One of the biggest potential issues with dual agency is that the buyer and the seller have opposing interests. Sellers want to sell their property for the highest price while buyers want to pay the lowest price with the best terms.
The fiduciary duty of loyalty and confidentiality in terms of pricing is especially challenging in a dual-agency situation. When a dual agent represents both a buyer and a seller, the broker cannot disclose to the seller that the buyer is willing to pay more than the buyer's written offer.
Using one agent for both buying and selling might seem like the easiest solution, but that's true only if your agent is up to the task on both ends of the sale. This means your agent is comfortable with representing you as both a seller and a buyer, and also that she's familiar with both neighborhoods.
Specific to dual agency, the failure to disclose and obtain the consent of the principal to the dual agency may result in disgorgement of the broker's compensation and rescission of the transaction.
Most purchase agreements are contingent on which two items? Among the various types of contingencies, two stand out in most home purchase agreements: home inspection and financing. These are the cornerstones that ensure the property meets your expectations and that you have the necessary funds to complete the purchase.
In some states, this isn't allowed because a real estate agent can't effectively represent the best interests of both sides of a real estate sale. If an agent is fighting for the highest sales price for a seller, this same agent can't also be working to get the buyer the lowest possible price.
Before a dual agency can move forward, both the buyer and the seller must consent to the agent representing both parties. Even after consent has been given by both parties, the agent is legally required to remain neutral and keep all information about each party confidential.
Dual agency occurs when a real estate agent represents both the buyer and the seller in a single real estate transaction. While dual agency is legal in California, it requires strict adherence to specific rules and regulations outlined in the California Civil Code, particularly Sections 2079.13 and 2079.14.
The second agency problem arises from conflicts of interest between asset managers and those on whose behalf they invest. It is in the interests of investors that asset managers seek out the best long-term returns. But fund-management firms are paid a fixed percentage of the value of assets.
The legal disadvantages of agency include the potential for unauthorized actions by agents that can bind the principal to unwanted contracts or make the principal liable for torts committed by the agent .
Agency Risk is a concern at the level of individual agents, whether they are processes, people, systems or teams. So having looked at agents individually, it's time to look more closely at Goals, and the Attendant Risks when aligning them amongst multiple agents.
Introduction: My name is Greg O'Connell, I am a delightful, colorful, talented, kind, lively, modern, tender person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
