What is Dual Agency?
If you’re new to the real estate world, you may hear the term “dual agency” come up in conversation. While most real estate transactions encompass a buyer’s agent and a seller’s agent, there are some circumstances that warrant a dual agent. You may be fascinated to learn that dual agency is actually illegal in the state of Maryland. Keep reading to learn more about what dual agency means and when it can be applied during a real estate transaction!
What is Dual Agency?
Dual agency is when a real estate agent represents both the buyer and the seller in a real estate transaction. As we mentioned above, it’s more typical to have a buyer’s agent and a seller’s agent involved in a real estate transaction. However, some cases warrant a dual agent to represent both parties in a transaction. One example that would require a dual agent is if a real estate professional is representing a buyer, then the buyer wants to purchase a home that the real estate professional has listed.
Pros of Dual Agency
There are definitely some benefits to working with a real estate professional as a dual agent. Communication is simplified when there’s only one agent involved in the transaction. Also, because the real estate agent is invested in making the deal happen, they will be more likely to work with both parties to make everyone happy and reach a final deal.
Cons of Dual Agency
Dual agency is pretty atypical because there are some drawbacks to this kind of arrangement. As mentioned above, the real estate agent is going to want to do what it takes to make the deal happen. This could lead the real estate agent to escalate negotiations to reach a deal fast, rather than seek the best possible price or arrangement for the buyer or seller. There’s also the issue of conflict of interest: a dual agent cannot give advice to either side of the real estate transaction parties without immediately committing a conflict of interest.
Dual Agency in Maryland
Because there are major drawbacks to each party in a real estate transaction, true dual agency is actually illegal in the state of Maryland. Dual agency is also illegal in Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, and Vermont. In the other states where dual agency is legal, there are major restrictions in place to limit the power that dual agents hold. An agent is able to work with a client (for instance, the seller, as a listing agent) and a customer (the unrepresented buyer) on one transaction. Dual agency in Maryland can also mean that two agents from the same brokerage represent different clients in the same transaction, with the broker acting as the dual agent.
Work with Hudler Homes
Are you thinking of buying or selling a property soon? You want to be sure you are working with a licensed and experienced real estate professional. The right real estate agent will guide you through the complicated process of negotiating to make a sale happen quickly and efficiently.
If you are looking for a real estate agent who knows the Baltimore area and can help you explore your options, I’d love to meet with you. Reach out to me through my website or give me a call at (302) 545-8569, and follow my blog for more home buying and selling tips!