Dual Agency is representation allowed by the Louisiana Real Estate Commission wherein a Realtor who has been contracted to represent a Seller may also represent a Buyer on the same listed property. It is very common in Southwest Louisiana for a Realtor to be in a Dual Agency position due to Buyers calling the Listing Realtor from signage or internet marketing. We answer many questions to potential Buyer inquiries.
When an offer is written, The Dual Agency form must be signed by both parties and discloses that a real estate licensee may potentially act as a disclosed dual agent who represents more than one party to the transaction (buyer and seller)
It explains the concept of disclosed dual agency and It seeks your consent to allow the real estate agent to act as a disclosed dual agent.
Some Buyers are of the opinion that they will get a better deal if they deal directly with the listing agent which I dont understand as to why they think this, since the commission has already been agreed upon in the contract between the listing agent and the seller and most agents are not in the habit of cutting their paycheck just because you want to buy their listing.
There are also buyers who think that the listing agent has secret information that they won’t get if they use a buyer’s agent. The thing is, agents are required to disclose any material defects they know about on a property. And, they are also required to keep the seller’s confidential information such as their bottom line confidential.
WHAT A LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT
∋ Confidential information that the licensee may know about the clients, without that client’s permission.
∋ The price the seller (or lessor) will take other than the listing price without permission of the seller (or lessor).
∋ The price the buyer (or lessee) is willing to pay without permission of the buyer (or lessee).
Some Buyers are cautioned NOT to use the listing agent because of conflicts of interest. However, some times the listing Realtor has already shown the property to the Buyer and spoken with them about the property.
The way I handle the situation is if a Buyer feels uncomfortable moving into a Dual Agency situation with me writing the offer for them, I will usually reach out to my Broker within the office and offer to have another agent step in to assist with the contract. This removes me from conflict with the Buyer.
There are a lot of opinions regarding Dual Agency, if it is something that concerns you from the beginning, get a Realtor from the that will represent you that way you will be an informed buyer making informed decisions and won’t feel uneasy if you attend an Open House and can communicate with your Realtor about any homes you are interested in viewing or making an offer on.