Don't Make a Move Until You Understand "Dual Agency"

I just sent off a listing agreement a short while ago, and I am very excited about my new listing, right here in Beaufort, SC. As I was typing instructions to the out-of-town seller, to ensure he was crystal clear on the terms of our listing agreement, I got to thinking about the concept of Dual Agency, which is a component of South Carolina listing agreements.

Dual Agency is probably one of those real estate terms that long-time agents take for granted. It bears explaining, though, because all prospective buyers and sellers should be very aware of and comfortable with the term before proceeding with a Realtor.

When you enlist a real estate agent to help you buy a house, that agent will serve as your buyer's agent. Your Realtor's job is to represent your interests above all else, including his own.

Likewise, when you enlist an agent to help you sell your home, that Listing Agent puts your interests first and foremost during the marketing and sale of your home.

So, we have Buyer's Agent, and we a Listing Agent. Where does a Dual Agent come in? Dual Agency arises when a firm (via that firms' agent), already has a relationship with one client, and then must establish a relationship with a second client in order to consummate a deal with the the first client.

Let's say you have listed your home for sale with ABC Realty. You are the client of your agent, but also ABC Realty. And, as we discussed earlier, your agent and ABC Realty has put your interests above all others, include prospective buyers. What happens if your agent finds a buyer for your house, or if another agent at ABC Realty finds a buyer for your house?

Those prospective buyers will want their own representation, right? You already have an agency relationship with your agent and ABC Realty, and that relationship calls for their undivided loyalty to you. How can your agent and his firm represent both parties, and remain loyal to both?

That's where Dual Agency comes in. Dual Agency calls for your agent and his firm to represent both parties fairly, professionally and ethically. Dual Agents, according to South Carolina law, cannot do anything which provides an advantage to one client or the other, since the dual agent's firm represents both.

It's that simple. And it is very important, because it is very common for agents from the same firm to work opposing sides of a real estate transaction together.