That's Canadian speak. How do you say it in Alabama? :p

My seller would be a happy camper.
Personally I don't represent either party when I have the seller and buyer on my own listing, I revert to a transaction broker and just handle the paperwork.

Of course they benefit. I am only representing the Seller therefore any and every thing conveyed to me by the Buyers is conveyed to the Sellers. Say the home is listed at $150,000 and the Buyer tells me that he/she wants to make an offer at $145,000 to see if the Seller will take it but he/she would pay the $150,000 if not. The sales agreement is written for the $145,000 per the Buyers request but it will be countered at the $150,000. Because of this very situation is why I will NOT do it with 1st Time Home Buyers or inexperienced Buyers. I only do it when the Buyer is experienced ie: Investor etc. I wouldn’t be able to sleep at night if I did. Actually the reverse is what usually happens when I represent a Buyer and the Seller is a FSBO. They state that they want $150,000 but after agreeing to a single party and they pay my fee BUT in total agreement that I only represent the Buyer (Redundantly). They are the ones that end up costing themselves money. I don’t know what it is but as soon as they sign the one party fee agreement they will start talking and end up stating that they would take a $145,000 for the property. I comp the home and it is usually worth more than what they are asking for it. (And FSBOs don’t want Broker help). My fiduciary responsibility is to my Buyer not the Seller. The last FSBO home I sold the comps came in at $196,000, the appraisal came in at $196,000 and my Buyers purchased it for $182,000 AND the Sellers paid my fee. Where did the FSBO save being a FSBO. Oh and the buyers also got the frig -
If you are asking if they benefit on the commission - They may or may not. It depends on each individual situation.

Almost everything I do is dual agency. But then, 90% of my business is REOs, and the banks don't listen to me as their list agent anyways. I'm just a paperwork flunky.

Realty Freak - The Designated Broker in Illinois is the Managing Broker. The state defines the managing broker as the Designated Broker since many companies have more than one Broker/owner.

We also are a Designated Agency State. The Broker may have one agent represent the seller and another agent in the same company represent the buyer. It is only when the same designated agent represents the buyer & seller that Dual Agency comes into play.

Dual Agency is risky, but at times necessary - to say one would never be one is naive. Here is a real situation:

You have been working with Betsy Buyer for several weeks looking at homes - she has informed you if a home that meets all of her needs comes on the market in a certain neighborhood she would overpay just to live there. You represent her as a buyer's agent.

Your sister just called you because her husband just took a job out of state & they have to move quickly and will even take less for their home if they have to. Their house is perfect for Betsy Buyer in the exact neighborhood she wants.

Yes, you can refer Betsy or your sister to another agent for representation - but you are still a dual agent by default and MUST disclose this and act as one - even if one of them is now represented by another agent. No one is going to believe that you don't represent your sister's interest to some extent. You have worked with Betsy showing her homes; you represent her & minimally know some confidential information. You cannot turn around & tell your sister that Betsy will pay whatever she wants and you cannot tell Betsy your sister will take less for her house because they "have to move". You are a Dual Agent without ever intending to be one - you cannot tell the other party something very relevant to their individual situation that will either cost or save them money.

You could even substitute former client for “sister”. If you know confidential information about one party having previously represented them as their designated agent, you must still keep that information confidential - creating dual agency.

This is a real life situation where Dual Agency is unavoidable. I agree that we should try to avoid it. I advise my agents to do so. But I warn them to keep their eyes open; because when you least expect it you may end up being one.

Annette,
Freak is a Chicago agent so he is aware of RE rules in our state. Actually Designated broker and Managing Broker are not always the same. There is always a single Designated Broker for the company but if the company has several offices then each office will have a Managing Broker.

Your "real Dual Agency situation" is not factually correct under agency law. Once you refer either the sister or your buyer to another agent who either lists or becomes the buyers agent you now have No Agency relationship with that person, you may have disclosure issues but Not an Agency Relationship.

Using your example it is your sister who you have never had an agency relationship with unless you she signed the listing contract with you. You seem to be confusing Disclosure with agency.

I disagree, no one is a dual agent by default. It is an ugly practice to keep quiet when you have information that you refuse to disclose to benefit yourself for a quick sale.
Agents are "supposed" to be honest. But even I have kept "secrets" to get a deal for myself, although I knew if I disclosed certain information I would have lost a sale. When you go months without making a sale it is hard to be honest and not think of yourself, especially when you are desperate for any sale as I was...

Agent Scooks
To which post were you responding to?

YOU just said it!! act soley in the best interest of that party. What if a dual agency was in the best interest. What if you told you clients, I will not take the buyers agent portion of the commission. You are effectively not double ending and being that you are saving them money, working in their best interest.

Rick that is a good point that you make and not double ending the commission certainly does remove most if not all of the conflict of interest.

I think that most people overlook the importance of the terms other than price that go into a successful real estate transaction. To be sure, price usually ranks way at the top, but it is seldom the only issue.

In Illinois, a dual agent can not advise ethier party. A fiduciary that can not advise their client has very little value in my opinion.

So in IL they cannot advise, I am assuming they mean give recommendations during negotiations. Now, I would also assume that doesn't include giving people their options and conciquences of those options ( pros and cons ).

What I have found is by puting this terminology on an addendum and making both parties aware that you are essencially going to remove the advise part and just do the "here are your options" part, literally everyone understands how the relationship needs to be. 99% of people don't expect you to lie to the other party in a dual agency. They expect you to be honest and ethical.

If each party understands what it is you have explained to the other and the ramifications of those choices things go surprisingly smooth. Now you have two referrals instead of 1.
:p

Texas does not have dual agency.

I've worked as an intermediary before, where I basically facilitate a transaction. I've generally done these between parties that had already come together on something and just needed someone to assist with getting the transaction done....contracts; coordinating inspections, appraisals, etc. Everyone involved has to sign off on the proper disclosure forms.

I also sell quite a few of my own listings. I've always been clear to the prospective buyer(s) that I represent the seller(s); making sure to give them a copy of the state required disclosure. A huge number of buyers don't seem to care, they want me to go ahead and write the deal knowing that I represent the seller. I always offer to refer them to another agent that can represent them, few ever take me up on that offer....Must be a regional thing judging by some of the other posts here.

Nothing wrong with double-siding the deal so long as all parties are informed as to who represents whom....and all in writing.

You must be really proud of yourself....Please consider another profession.

Shame on you -
You obviously were not working for anyone other than your commission - Go away -