Did You Know The Same Real Estate Agent Can Represent
Both Parties in a Transaction?
In Arizona, it’s legal for a real estate broker/agent to act as a dual agent, which means they will represent both the seller and the buyer in the same home transaction.
- One of the main reasons people want a dual agency scenario is that it can be faster and more efficient for all parties involved.
- Alternatively, a home buyer may find themselves in a situation where they want to purchase a home but do not have a real estate agent of their own, and choose to use the seller’s agent to facilitate the deal.
Here’s how a dual agency deal works: both the seller and the buyer must have informed written consent that a dual agency is taking place and be made aware of the rules and risks involved with this type of transaction. In this case, it is the dual agent’s job to remain neutral as the negotiations take place and not side with one party over another.
The disadvantage of a dual agency is that the agent will not be able to satisfy the duties of loyalty, full disclosure, or obedience to lawful instructions, which are all requirements laid out contractually for both the seller and buyer’s agent.
If you’re considering a dual agency, remember the following details. A dual agent is still required to maintain confidentiality of material information and account for funds with both parties. In order for a transaction to take place, the written consent for dual agency must be provided. This written request needs to be stated before any written agreements are drawn up for the purchase or sale of a home.