In some states, dual agency is an option to enter with their real estate agent(s) for sellers and buyers. While this can streamline transactions, you need to be fully aware of everything that entails, especially as one party can wind up getting the short end of the stick. So here is the dual agency’s pros and cons in Utah.
What is Dual Agency?
As defined by one of the top real estate sites, “dual agency refers to the relationship you have with your Real Estate Agent as a buyer or seller. With two agents or a single agent, which is more common, dual agencies can occur. ” “The seller’s agent who also represents the buyer works in a dual agency with a single agent under a dual agency.” So dual agency involves one agent in both roles, serving essentially as both the seller’s agent and the buyer’s agent.
This can obviously lead to a conflict of interest, which is why it is not allowed in all states. In those states where permitted, both seller and buyer of the dual agency are required to be informed by dual agents. “These two parties must also sign forms of consent to recognize the concept of dual agency and the restrictions imposed by this type of agreement on the real estate agent.”
PRESSURE TO CLOSE
A dual agent receiving two commissions— one from the buyer and one from the seller— may be just a bit anxious to close those commissions as quickly as possible. In fact, although unethical and possibly illegal, it happens that dual agents fail to reveal certain facts that could make the deal worse and cause them to lose those commissions.
FAILURE IN DUTY OF LOYALTY
A dual agent has a duty to be loyal to both buyer and seller. The agent must strive to get the best deal from the buyer and the highest price from the seller. But these are obviously competing interests. Therefore, the agent can show favoritism by advancing the interests of one party over the other. People do it naturally, and real estate agents are certainly not immune.
If you are a buyer, your buyer’s agent will typically advise you about the reasonableness of the Listing price and may suggest a lower offer. But it can happen with a dual agency in Utah that the agent defends the original listing price in order to get a larger commission.
LESS THAN BEST FIT
The goal of a seller’s agent is to get a buyer to buy the property the seller sells — not to find the property that best fits the seller. That means that if you use a dual agent simply because you don’t have an agent (a buyer’s agent) with just that goal, you may miss properties that fit your needs.
FEWER OPTIONS IN CASE OF LEGAL ISSUES
If legal issues arise, your options may be more limited with a dual agency in Utah. You’re only dealing with one broker’s office, and that limits who you can bring a lawsuit against if such a situation arises.
The Must-Have for Successful Dual Agency
Certainly, dual agency can work for your benefit in Utah. But it also carries a number of significant dangers. So if you choose to use a dual agent, you need one you can trust unconditionally. And that’s where we go.