Dual Agency Disclosure Must Be Signed By Both Buyer And Seller
Question: I am a real estate agent in a brokerage firm in north Phoenix that has more than 300 real estate agents. Today I received an offer to buy one of my listed homes from another real estate agent in my brokerage firm who is representing the buyer. I have never met this real estate agent before, but she says that we are dual agents representing both the seller and the buyer because we are real estate agents in the same brokerage firm. Is that correct?
Answer: Yes. A real estate agent representing the seller and a real estate agent representing the buyer in the same transaction, who are employed by the same brokerage firm, are technically each dual agents representing both the seller and the buyer. The disclosure, and a consent in writing, to this dual agency status needs to be made to both the seller and the buyer. In many Phoenix brokerage firms, 30% to 40% of the transactions are dual agency.
Note: In smaller communities like Safford with only a few real estate agents, a large majority of real estate transactions are dual agency. Obviously, if a small community only has one agent, all transactions in that small community will probably be dual agency.