When you hire an agent to represent you in the purchase of your home, you are actually hiring their Broker, and therefore, in effect, hiring EVERY agent in the brokerage. Dual agency occurs when a real estate broker represents the seller and the buyer in a real estate transaction. If the agents representing the buyer and seller do not work for the same brokerage, there is no dual agency situation. If dual agency occurs, it is required that all parties are informed in writing prior to accepting a purchase agreement.
Dual Agency in MN Real Estate IMPORTANT CONSIDERATIONS FOR BUYERS:
You have to agree to dual agency up front – keep in mind that you will may have access to see more homes if you allow dual agency. Buyers may choose “Buyer Broker” representation during their home search process with a sales associate. By consenting to dual agency, we will be able to view all homes that are listed with our broker. Without dual agency acceptance, you will NOT be able to view any homes listed by our broker.
“Motivational” information is kept confidential in dual agency.
Buyers and sellers may share motivational information with their real estate sales associate. This could include information on acceptable price, terms and their reason for buying or selling. In a proper dual agency situation, this information will be kept confidential. Confidentiality prevents either party from having a negotiating advantage.
The sales associates involved in the transaction owe an equal level of representation to both the buyers and sellers and must be careful not to harm either party. While the agent(s) must keep some information confidential, any known material fact or problem with the home must be disclosed to the buyer.