Dual Agency: Defined
The short version: a Dual Agency is one of the two ways a real estate company can operate their business. We choose to operate as a Dual Agency because we believe it allows our team to work together to better serve our clients. If you’re still confused or want to know more, read on...
If you’ve read anything about Dual Agency, you’re probably scratching your head wondering why it seems so complicated. To make it simple, a real estate company has to specify which way they are going to conduct business, and the two most common types are to act as a Designated Agency or a Dual Agency. In a Designated Agency, one particular real estate agent is appointed (or designated) to represent the particular client. The paperwork that is signed is between the client and that particular agent. At that point, only that specific agent and their Broker legally represent the client, and information about the client cannot be discussed with anyone else.
On the other hand, a Dual Agency is when the client hires a real estate agency to represent them. While they likely are speaking or working with a particular real estate agent at that company, the paperwork only specifies that the company represents them. So in that case, technically all of the agents within the company represent all of the clients, regardless of which real estate agent is personally communicating with the client on a daily basis.
You may be asking yourself: is one better than the other? It depends on your preferences, but a benefit of a Dual Agency is that you’re not hiring just one real estate agent but a whole company’s worth of agents. Here at The Gove Group, we rely on our Dual Agency practice to operate as a team. Our agents and Brokers are constantly helping each other meet clients’ needs, troubleshoot issues as they arise, and sharing experiences to become more knowledgeable. As they say, two heads (or fifty) are better than one.
Of course, there are other factors to consider. While a Designated Agency offers you only the man-power of one real estate agent, some buyers and sellers prefer the peace of mind of having only one trusted confidant throughout the process. In a Dual Agency, it is more likely that the buyer and the seller in a transaction could be represented by the same company, which creates something called Disclosed Dual Agency. In some cases or for some clients, that situation may not be ideal, so it’s a good idea to gather as much information as you can to make an informed decision about which type of real estate agency you want to hire.