Dual Agency is No Agency

What is dual agency?

Dual Agency is agency where the agent cannot favor the buyer or the seller. It’s essentially an agency where the agent owes loyalty to no one but themselves and their principal broker. Sellers and buyers agreeing to dual agency are getting nothing while the agent and broker make twice the money.

As a seller does dual agency add any value to the deal?

No, it adds nothing to your end of the deal. In fact in my opinion you’re getting nothing for the commission you are paying. I seriously doubt you will lose a buyer because you refuse to agree to a dual agency relationship.

As a buyer, is there a benefit to my agreeing to dual agency?

NO! There is no benefit to the buyer agreeing to dual agency. I believe the opposite is true.

Do you as the buyer or seller have to agree to dual agency?

NO! You are not required by any law to accept dual agency. Just don’t agree to it. It’s that simple.

If I agree to dual agency how can I protect myself?

Hire a lawyer to review all documents. That review will include the disclosure form and any written offers.

As an agent why don’t you like dual agency?

Because I think we are setting ourselves up for malpractice. In some dual agency deals we are paid twice the commission to very little and when it’s us providing the forms any mistakes in those forms will come back to haunt us and the brokers involved. How will you explain to a jury that you got were paid to do nothing besides show the house?

What should brokers and agents do to protect our clients and to maintain good public relations?

Just do as Nancy Reagan did, “Just say no.” But if you don’t say no, then refer your seller to the Lombardi Law Firm for a review of the documents including the disclosure form and buy-sell agreement. Even if you say no you can still refer your sellers and we will be happy for one set fee to provide a review of the Iowa Residential Real Estate Disclosure Statement and a buy-sell agreement. We will give them a better price if they sign up for both at the beginning of the listing. That way everyone knows what it is costing them and you get peace of mind to know a lawyer is reviewing the deal.