Dual Agency and protecting the interests of clients
Saying No to Limited Dual Agency
It has always been a fundamental premise of both agency law and professional ethics that all professionals must avoid acting for two clients whose interests are in conflict. Realtor’s have a fiduciary duty to their client and are required to provide impartial expert advice and are to place their clients’ interests equal to or ahead of his or her own in all dealings involving their client.
This fiduciary duty to a client is paramount and when a Realtor represents both a buyer and a seller in a transaction the fiduciary duties of full disclosure and confidentiality simply can not be given to both parties.
It is for this reason that VancouverRealEstate.com has taken the steps to disallow dual agency.
When you work with any VRE hand-vetted agent your best interests are NEVER compromised.
What is Dual Agency?
How can an agent get the highest price for the seller and the lowest price for the buyer at the same time?
Dual agency is created when an agent represents both the buyer and the seller in a single transaction. This can happen if a Realtor who is representing a buyer sells one of his or her own listings to that buyer.
A dual agent must be impartial to both the buyer and the seller and fully disclose all information pertinent to both the buyer and the seller and fully disclose all information pertinent to the transaction. A Realtor can be dual agent only if both the seller and buyer agree in writing.
In a dual agency situation an agent receives both the seller and buyer commissions.
Why VRE does not allow Dual Agency
Our belief is that dual agency interferes with consumers’ ability to make an informed investment decisions. If a professional is placed in a position of conflict between the interests of a buyer and a seller, they should resolve the matter by declining to act for one.
By incentivizing an agent with payment of a double commission the interests and fiduciary duties that are owed to the client are compromised. The fiduciary duties of full disclosure and confidentiality simply can not be given to both parties. At VancouverRealEstate.com we provide the highest level of representation by ensuring that all of our Agents represent a Buyer or a Seller in any given transaction. Never both.
How do we prevent Dual Agency?
Simple. We make it part of pre-requisites when hand-vetting agents.
In addition to ensuring that all VRE agents have outstanding negotiating skills and are highly knowledgeable in their chosen neighbourhood markets, we ensure that all VRE referred agents agree not to engage in dual agency.
If at any time the possibility of Dual Agency arises VRE is notified and the new party to the relationship, whether it be a buyer or seller, is given the chance to find representation on their own or to have VRE assign a competent and knowledgeable agent to represent them.
At no time does VRE get involved in the transaction. Our interests lie in ensuring that the buyer and seller each have professional representation from a highly skilled agent. An agent who is motivated by protecting the interests of his or her client at each and every step of the transaction – not motivated by the lure of a double commission.
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