SellingNorthernNV

Anyone who’s been in this industry will tell you there’s nothing better then closing a double ender, or representing both sides to a transaction and getting the full commission. However, what they won’t always tell you is how risky and stressful they can be since a dual agency creates a relationship that isn’t very clear-cut.

To avoid any potential problems down the road, be sure to disclose the limitations put on you when you create a duel agency relationship. Some states have legal forms that need to be signed by all parties involved. But, I suggest taking it a step forward and make sure they understand the situation completely, and how it does create a conflict of interest for you. In a duel agency, your fiduciary duties to either client are much more limited because you can no longer advocate for either party, since each client has opposite goals.

Before deciding to start a dual agency relationship you should consider the following:

Review your state’s laws and determine if dual agency is legal. In many states it is prohibited to ensure the agent isn’t put in a position of trying to satisfy both parties when each has different goals. Also, find out what disclosures and procedures you must follow by law. Consult with an attorney if necessary.

Review your company’s policy to see if dual agency is permitted, and what actions you may or may not perform.

Disclose to all parties that you are working as a dual agent and what it means in writing. Be sure to obtain their written permission in a timely manor.

Always recommend in writing that both parties retain an attorney to advise them regarding all documents and other negotiated issues. Whether they do so or not is up to them, but it’s always better to have a way to push liabilities off your shoulders.

Should you have any questions or need further information, please don’t hesitate to contact me,(775) 220-1630
Or visit my website at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Tags: Industry Tips

This entry was posted by Josh Talayka on Monday, April 30th, 2007 at 11:54 am and is filed under Industry Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.