Buyer agency has been endorsed by mainstream consumer advocates such as Ralph Nader, Money Magazine , Kiplinger s Changing Times and the Consumer Federation of America. Agency Agency can be a confusing subject for both consumers and real estate practitioners. California law requires licensed real estate agents to present an agency disclosure form to all potential clients. Brokers often have other licensed salespeople or brokers working for them under contract, called associate licensees. However, the broker is always the agent in the transaction and is responsible for the actions of any associate licensees.
Dual agency is legal in every state as long as it s fully disclosed.
The advantage of dual agency is a smoother transaction, because there is only one agent acting as a mediator between the buyer and seller. The disadvantage of dual agency is that neither the buyer or seller are fully represented, and the buyer is usually not as well represented as the seller. The agent almost always has a written contract with the seller, while buyer broker contracts are still not widely used. The dual agent has an obvious conflict of interest, even though experienced real estate agents act in a professional manner and do their best to serve the interests and needs of both parties. The dual agent can t disclose to the buyer that the seller is willing to sell the property for less than the listing price, without written consent.