Definition of Dual Agency:  A situation where one Broker represents both the Buyer and the Seller.  Although legal in Arizona, provided it is fully disclosed and consented to by all parties, it is also of questionable ethics – at best!

How Does Dual Agency Work?:  An agent lists a home for sale, and you see the “For Sale” sign and contact that agent.  Or maybe you see it at an open house and sign a contract to purchase that home with that agent. But wait!  That agent represents the seller.  So now he’s representing you also?  If he does, how can he do that effectively?   He carries messages back and forth between you and the seller, but he is forbidden by the Dual Agency to be an advocate for either of you.  
But then again, maybe he has you sign the “Dual Agency” contract and marks the box that says he is actually the ‘Seller’s Agent.’  When that happens….RUN! Find an agent who is ready to represent YOU and ONLY YOU in this all important transaction.

Another Way Dual Agency Works:  Your agent from XYZ Realty takes you to look at homes, including some that are listed by XYZ. You choose one of XYZ’s listings. Although your agent is not the listing agent, it’s still listed with an XYZ agent.  No problem, right?  WRONG!  Your Buyer Broker Agreement is with the BROKER of XYZ Realty, not with “your” agent.  You are not hiring an AGENT.  You are hiring a BROKER.  An agent is just that….an AGENT of the BROKER that employs him.  The Listing Contract is with the BROKER of XYZ Realty, NOT with the seller’s agent. Both agents are themselves ’sub-agents’ of the BROKER of XYZ Realty, who is “your” representative……BUT also the seller’s. This is almost always worse than one agent representing both parties. In that circumstance, the agent will usually at least try to be fair. When both parties are represented by two different agents from the same brokerage, it almost always works out that each agent will advocate for “his own” client, which means that broker will be actively betraying the interests of BOTH of his clients – without ever even realizing it.

Why Do We Have Dual Agency?:  MONEY!  If a Broker sells his own listings, he keeps all commissions.  He doesn’t have to share.  It’s that simple. 
It used to be that all agents worked for Sellers.  Even the Buyer’s agent worked for sellers.  Everyone worked to get the seller’s home sold.  And the Buyer had no representation.  It was a “Buyer Beware” market.  But all that changed.  Buyers now have the right to representation.  They can hire their own agents and rest assured that their agent is representing THEIR interests and ONLY their interests. 
But, as it always goes, a problem was born out of a solution.  If an agent wanted to sell his own Broker’s listings, how could he do it?  I mean, LEGALLY speaking, how could he do it?   AND THUS….the “Dual Agency Disclosure” was born.  It was decided that, as long as ‘relationship’ was disclosed and the Buyer and Seller agreed IN WRITING, it could be done.  BUYERS AND SELLERS…..BEWARE!!

Buyers and Sellers deserve the BEST, UNDivided loyalty that an Agent can provide.  That is what TRUE Agency is all about.  An Agent who works on YOUR behalf and is ONLY watching out for YOUR interests.   If that loyalty is EVER divided…..watch out!  Take a good, long look at that “Agency Disclosure.”

You deserve the peace of mind knowing that your agent is watching out for YOU and ONLY YOU!