One tenet of agency is to provide “undivided” loyalty. It’s an important step in becoming a true fiduciary.
Limited Dual Agency(LDA) in real estate is when one agent acts for two parties in a transaction. LDA will officially be banned in March 2018. The most common iteration is when the listing agents brings a buyer for the seller (or offers to act on behalf of a buyer who calls the listing agent directly). Interestingly, many sellers hire their listing agent in the hopes they have a buyer for their property. To me, this is like asking the prosecution lawyer to also act for the defence in a court case.
At the same time, this practice has been going on for years and many point to the great success this has provided clients both buyers and sellers.
The idea that the seller’s agent is tasked with selling the client’s property quickly, for top dollar and for terms benefiting the seller while keeping their personal story private seems at odds with suddenly being able to switch a gear and become “impartial” to the transaction by evoking LDA.
What about the buyer’s desire for the best price and terms and impartial due diligence? With a “double end” commission on the line and a fast flow of communication, agents who specialize on this transaction can be greatly rewarded but are they not somehow to close to the “deal”? The superintendent thinks they are.
It’s exciting to see how my profession will grow with this important change.