Dual Agency and Buyer's Today

The internet is doing something very interesting aside from providing wonderful information to buyers and sellers.  It may start to change the way we do business and this is a good thing.  Last week I got a call from a buyer.  It was a telephone interview as this buyer was not just questionning me about properties he had seen online.  He was questionning me as to how I do business.  Smart guy!

This buyer figured out that for him, he did not want to be involved in a dual agency situation when he finds a property he wants to buy.  He wants his own agent and he wants access to information about the house and the comparables and all the things he needs to know, he wants a buyers agent to represent him.  He feels that his lawyer, which we use in New York, will represent him and have his best interests at heart.  He wants the same thing from his Real Estate agent/broker.  Lot's of states across the country have outlawed dual agency but this is still permitted in New York State.  I do not believe it is in the best interests of either the buyer or seller when an agent works as a dual agent.  The agent is on the fence and walks a very narrow line of what they can say and to who.  Here are the paragraphs that apply from the New York State Agency disclosure form:

DUAL AGENT

A real estate broker may represent both the buyer and the seller if both the buyer and seller give their informed consent in writing. In such a dual agency situation, the agent will not be able to provide the full range of fiduciary duties to the buyer and seller. The obligations of an agent are also subject to any specific provisions set forth in an agreement between the agent, and the buyer and seller. An agent acting as a dual agent must explain carefully to both the buyer and seller that the agent is acting for the other party as well. The agent should also explain the possible effects of dual representation,including that by consenting to the dual agency relationship the buyer and seller are giving up their right to undivided loyalty. A buyer or seller should carefully consider the possible consequences of a dual agency relationship before agreeing to such representation.

DUAL AGENT WITH DESIGNATED SALES AGENTS

If the buyer and the seller provide their informed consent in writing, the principals or the real estate broker who represents both parties as a dual agent may designate a sales agent to represent the buyer and another sales agent to represent the seller to negotiate the purchase and sale of real estate. A sales agent works under the supervision of the real estate broker. With the informed consent of the buyer and the seller in writing, the designated sales agent for the buyer will function as the buyer's agent representing the interests of and advocating on behalf of the buyer and the designated sales agent for the seller will function as the seller's agent representing the interests of and advocating on behalf of the seller in the negotiations between the buyer and seller. A designated sales agent cannot provide the full range of fiduciary duties to the buyer or seller. The designated sales agent must explain that like the dual agent under whose supervision they function, they cannot provide undivided loyalty. A buyer or seller should carefully consider the possible consequences of a dual agency relationship with designated sales agents before agreeing to such representation