UNDERSTANDING REAL ESTATE AGENCY

By law, an agent must provide a buyer or seller with an agency disclosure form, a copy of which is available by Clicking Here. 

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It explains that the buyer or seller is the agent's CLIENT and, should the same agent represent both parties (dual agency), express dual agency consent by both parties is mandated via written agreement, a copy of which is available by Clicking Here.  The reason that the LREC requires your consent to such an arrangement is that, being blunt, entering a dual agency agreement is pretty dumb.  How can the same individual keep the best interest of both buyer and seller at heart?  At BWW Realty, we WILL NOT enter into dual agency relationships!!  Period!  We serve as agent of EITHER the seller (at our auctions) or the buyer (via our buyer program outlined on this website), but NEVER both.  The LREC requires both parties to sign on the form to confirm that they both REALLY want to do it and that they have read the inherent drawbacks of entering such an arrangement. 

In the case of MLS (multiple listing service) members, the listing agent then submits the property to the local MLS and, in doing so, thereby agrees to  share listings with other MLS members and agrees to cooperate with them.  "Cooperate" essentially means split the commission stipulated in the listing (typically 50/50) with a buying agent who represents the buyer (generally irrespective of whether that buying agent is an MLS member or not). 

The MLS offers the upshot of shared listings, but it comes with the downside of no concession being offered in instances where buyers choose to represent themselves.  Instead, dual agency, referenced above, often happens by "default" among consumers who have no clue how agency works (hence the requirement of the agency disclosure form). 

O. K.  Now that you have an understanding of how real estate agency works, the next step is to ask some critical questions of your prospective buying agent (and most won't want to hear these questions).

CLICK HERE to ascertain some crucial questions to ask of your prospective buying agent.