Bob was a unique dual agent, who represented both the buyer and the seller in a single transaction. Unlike other agents, his loyalty was divided between both parties.
Bob was very pleased with his unique business model, as he was able to make a commission from both sides of the transaction. However, little did he know, there were a few states that made it illegal to be a dual agent, citing an inherent conflict of interest as the main reason. These states were Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming.
Bob was unaware of these laws and continued to work as a dual agent. He would often represent a buyer and a seller in the same transaction. He would tell the buyer that the house was a steal and tell the seller that the buyer was willing to pay top dollar. He was constantly playing both sides of the field.
One day, Bob had a potential buyer and a potential seller that were both interested in the same property. Bob was ecstatic, as he would be able to make a double commission from the sale. He set up a meeting with the buyer and the seller to show them the property.
As they walked through the house, Bob couldn’t help but to exaggerate the positives and downplay the negatives for both parties. He would tell the buyer that the kitchen was brand new, but neglect to mention that it was poorly designed. He would tell the seller that the buyer was willing to pay top dollar, but not mention that the buyer had a long list of contingencies.
Both the buyer and the seller were confused and frustrated by Bob’s representation. They didn’t understand how the same house could have such different qualities depending on who Bob was talking to. Eventually, they both decided to walk away from the deal, and Bob lost both his potential commission and the trust of his clients.
Bob soon realized that his dual agent ways had caught up with him and that less confidentiality and fair representation to both parties is not the way to go. He learned his lesson and decided to stick to representing only one side of the transaction. He became a much more successful and respected agent, and never looked back on his dual agent days again.
The end.
Dual agency is when a single real estate agent works with both parties in a real estate transaction. There are two types of dual agency transactions, one is acceptable, and the other is not. In the first scenario, a single agent works with a buyer and a seller, creating conflicts of interest.
The second scenario is when two agents from the same real estate brokerage each represent a buyer or seller, this is an acceptable form of dual agency. Dual agency can be confusing for general public and many real estate agents do not explain it adequately.
Fiduciary duties for real estate agents do not exist in dual agency, and it only benefits the agent. Many real estate agents fail to carry out proper dual agency disclosure and it should be avoided if you want a positive buying or selling experience.
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Arsh Syed, a real estate agent in Toronto, offers services to help property owners buy, sell, or rent their homes and manage the transaction.
He aims to establish relationships and provide exceptional service to improve the housing crisis in Toronto. By hiring him, property owners can reduce risks, save time, and save money.
For more information about his services, you can visit https://www.real-estate-in-toronto.com or contact (416) 844-2217.
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