Margate Realtors Worry About Dual Agency Debate in California

Is it a conflict of interest when a Margate Real Estate company represents both the buyer & seller? That’s the issue being decided by California’s Supreme Court. The judges ruling could have heavy ramifications not just for California real estates and brokerages, but the realty industry nationwide.

Double agent. How real estate is bought and sold reaches California Supreme Court

Coldwell Banker in California claims that ‘dual’ agencies benefit the public. Consumer advocates have condemned that practice, which studies have shown results in higher prices.

Legislators have observed that dual agency still creates a level of irreconcilable conflicts of interest, even if those conflicts are disclosed to consumers.

Dual Agency poses a host of ethical risks in Margate and Ventnor too

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Some says dual agency is a way for brokers to unfairly get paid double. It is more common at large brokerage firms.

Dual agency occurs when real estate agents from the same firm claim to represent both the buyer and the seller in the same transaction. Representing adversarial interests at the same time is a legally impossible situation (“serving two masters”) and is illegal in every other profession. Worse, brokers are incentivized with a double fee if they manipulate you to agree to this.

Dual agency (also known as Designated Agency) is often  branded (even marketed) to consumers by large brokerage firms as a thing of value – it is not. Although the term “dual agency” seems to infer an important relationship of trust and reliance, dual agency is a betrayal in which the firm becomes a secret double agent that only gets paid double if they can convince you to do it.

In order to avoid dual agency, seek out smaller, highly qualified and independent brokerage firms that understand and agree to other more favorable relationships such as Exclusive or Single Agency representation.

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