As W. Clement Stone once said, “You affect your subconscious mind by verbal repetition.” When you see real estate jargon more than once every 5-10 years, you begin to recognize the terminology, and having information makes you confident.
As we have previously discussed, the Real Estate Consumers Agency and Disclosure Act (RECAD) requires the qualifying broker to determine the types of brokerage services which his company and agents may offer. These services include single agency, sub-agency, dual agency and transactional.
We have already talked through the points of single agency, sub-agency, and transactional brokers. Let’s dive into limited consensual dual agency. That is a mouthful. You may also see it referred to as LCDA.
LCDA is an agency relationship. This means the real estate brokerage represents both the buyer and the seller in the same real estate transaction. This requires the agent/brokerage to obtain the written consent of both the buyer and the seller to represent them as their agent.
There are a couple of common circumstances where dual agency is encountered. The first is when two or more real estate agents licensed under the same broker each represent a different party to the transaction. Secondly, when one agent represents both the buyer and seller in the same transaction.
While operating under dual agency, where one agent helps both parties in the same transaction, their goal is to reach a win-win in negotiations. The dual agent is legally bound to treat both parties with loyalty, disclose relevant information, and to keep confidential all information that could prove detrimental to one side or the other. In addition, they obey each party within legal limits, give reasonable care and diligence, and lastly the agent is accountable to the properties or monies entrusted to them.
Under a dual agency, where there are two separate agents operating under one brokerage, you should expect to receive the same service described above. However, in this case, although there is one broker, there is an agent in the transaction representing the buyer and a separate agent representing the seller. This is very common in large market areas.
When it comes time to consider signing a dual agency agreement, give Mike and Brandie Brown and the Josh Vernon Group a call to determine the types of services that will be provided. Ask what scenario under which you would be signing a dual agency and what types of information you would need to share. They are here to help make the home transaction as smooth as possible and empower you with information to make your decisions confidently.