Slamming dual agency
Letter to the Editor
By Inman News, Thursday, March 4, 2010.Re: 'The dual-agency "slam dunk" ' (March 2)
Dear Editor:
I have to say, I believe that dual agency is not in the best interest of either the buyer or seller, and I feel that it represents a violation of the fiduciary obligation an agent has with their client. It is impossible to fairly represent both buyer and seller. The only person that this works for is the agent who usually ends up making the entire 6 percent.
So, I guess it is a "slam dunk," but in the wrong way. This is why most of the states have made the practice of dual agency illegal.
John Juge
Loan officer
Axia Financial
Kirkland, Wash.
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Submitted by Alvaro Ramirez on March 4, 2010 - 1:19pm.
The challenge of dual agency is that it would be difficult for the buyer and seller to say that their best interests are at the center of the transaction. This only because as a client you are always left wondering that if indeed your interests were being protected, specially in this market.
The same can be said when the RE Agent is also the loan office on the transaction or the loan is being done by the same office.
While there are plenty of honest and ethical RE Agents and Loan officers - we are in a market where we must regain consumer confidence and that may mean to take the necessary steps to show we mean well every time. This can be achieve perhaps by doing away with dual agency and separating mortgage and real estate as it used to be. You either do real estate or lending but not both.
Submitted by Tyler Webb on March 7, 2010 - 5:25am.
I have to agree with John Juge. In Maryland one agent cannot represent both sides of a transaction. However,with disclosure, an agent can be the only agent in the deal.
For instance, I am the listing agent and the buyer says he or she does not need representation. With written disclosure, I can prepare the contract representing only the seller. This is not a "dual agency" in Maryland. That term defines the situation where two agents from the same brokerage are involved in the same transaction as selling and listing agents.
Still, we avoid being the only agent involved if at all possible.
Tyler Webb
Associate Broker
Champion Realty Inc
Annapolis, MD
www.recrab.com