What Type of Agency, or Representation, Should I Choose?
“Okay! You’ve convinced me that a Representation Agreement is a good thing and in my best interest, but now I have a choice to make between “Single Agency” and “Limited Dual Agency.”
And, if I choose “Limited Dual Agency”, do I want to be represented WITH or WITHOUT Assigned Agents? Can anyone help me understand all this so can make the best decision for my situation?”
Well, that’s what we’re here for! It’s really not as complicated as it sounds, so let’s dive in.
Single Agency Representation means that your agent represents you and ONLY you in your real estate transaction. Furthermore, under Single Agency, the entire brokerage, which includes every agent in the firm, is obligated to promote your best interests and cannot represent the other party in your transaction.
That may sound like a great deal for you, but there are a couple of things you need to understand before you make this choice.
If you are a seller, this means that the agents of the brokerage representing you will not be allowed to show your property to any of their potential buyers. And, if you are a buyer, you will not be shown any of the homes listed by agents in this brokerage That could account for a significant number of buyers or properties on the market that you will not have access to, so you will want to take that into consideration when you make your decision.
Limited Dual Agency opens the possibility for the brokerage and its agents to represent both the buyer and seller as “Clients” in the same transaction. This allows you, as a buyer, to choose a property listed by an agent in the same brokerage, and, if you are a seller, it also means other agents within the firm will to be able to show your home to their buyers.
“Without Assigned Agents” means that the brokerage and its licensees are Agents for both Clients equally. They are still bound by all the duties owed to a “Client”, but, now, because they represent both parties simultaneously, they cannot advocate on behalf of one client over the other and must promote the non-conflicting interests of both clients in the transaction.
“With Assigned Agents” means the Designated Broker may assign an individual licensee, within the brokerage, to represent each Client and act solely on their behalf. The Agent assigned to each client then has a duty to promote that client’s best interest and maintain his/her confidential information. The Designated Broker will always be a Limited Dual Agent for both clients, and, as such, is responsible to ensure that both Assigned Agents fulfill their duties to their respective clients.
You may ask yourself, “Once I make my choice, am I absolutely locked in with no way out?” The answer is, “No.” If, at some point in the transaction, you desire to change this agency relationship, please feel free to discuss this with your agent. The Representation Agreement will need to changed, initialed, and dated by both parties to reflect your new wishes.
Hopefully, this has cleared up any confusion regarding the types of Agency or Representation available to you and the pros and cons of each.
If you have further questions or need more information, contact our team at Sunshine Idaho, Realty ONE Group Professionals, 208-513-9583, [email protected]