Dual agency definition: Occurs when the same brokerage represents both the buyer and the seller under written agreement. This means that if you have a buyers agreement with a real estate agent and find a home you are interested in that is under the same brokerage that your agent works for, another agent (or the same agent) within the same office can represent the seller.
A buyers agreement…that sounds pretty legal right?
Think again. Dual agency can be devastating to a buyer in certain situations. A company that allows dual agency may let on that they work as a dual agency but actually conduct business more closely to a single agency. This can also give the sellers agent information that may benefit the seller. A sellers agent’s fiduciary responsibility is to the seller. They must disclose any information they have that can help the seller.
By using a dual agency, buyers are giving up their right to have complete 100% buyer representation. Including loyalty from their real estate agent. Since the agent (agency) is representing the opposite side of the transaction as well. If you are using a dual agency, be careful with the information you divulge to your agent. Because, this could be intentionally or unintentionally used in the real estate transaction.
The only way to completely avoid this issue is to use an buyer’s agent like a Colorado buyer’s agent. There are never any listings within the entire office of Colorado exclusive buyers agencies.
In conclusion, if you are ready to buy a home remember that you have the right to have complete buyer representation. An agent whose fiduciary responsibilities are to you and only you.