I was talking to a person who was a real estate agent. She told me that if I were ever in the market to give her a call. I told her that if I did I would want her to only be a buyers agent and not try to represent both the buyer and seller simultaneously. I am very leery of people who work for commission. I have worked with too many of them in other fields and I have learned that some will say anything in order to get that sale. She told me no problem and that Texas law prohibited an agent from representing both the buyer and the seller. I went home and tried to research this and could not find any reference to it on the web.
So the question is, does anyone know of a law in Texas that prohibits real estate agents from being both a seller’s agent and a buyer’s agent for the same transaction? Is this person lying to me or is this the truth? I would appreciate a webpage to back this up as well.
Landlord said:
Feb 01, 09 at 6:45 amThey can represent both, but both the seller and buyer need to sign a contract acknowledging they know it is a dual agency.
You can search for "texas dual agency real estate" if you want to see it on a web page, as if that makes it right, LOL.
Dual agents have to favor the seller, the disclosure laws prevent them from really helping the buyer in this situation.
golferwhoworks said:
Feb 03, 09 at 3:33 pmit is that way in most states as the agent has a fiduciary responsibility to one or the other and cannot be the same to every party involved. She has to be on some ones side in the transaction
Samuel_T said:
Feb 03, 09 at 6:06 pmI really do not like answering questions on Yahoo Answers, but questions like this with confused answers bother me as a professional real estate agent.
Please see the blog entry:
http://www.realty-tx.com/blog/dual-agency-vs-intermediary-and-is-dual-agency-illegal-in-texas/
Bub said:
Feb 04, 09 at 6:08 amI am not sure how this would work? I guess if your were out of town looking for a house in a new town, you might engage a realtor to look for a house for you? Most people I know just go to a realtor and look at what they have or see a sign in a yard and contact the realtor on the sign and ask about the house? Star for you, good question.
In most instances, the realtor for the seller advertises the property for sale, and then the buyer contacts them to see the property, the buyer never really has an agent, doing so would add an additional 7% to the cost without any real value.
As a buyer you know what the seller is asking, you make your offer, and then they either counter offer or accept and you accept or you give them another counter offer.
If you are willing to go higher than your first offer, just don’t tell the realtor. Why would you want another person involved to take more money from you and slow things down. Optimally, you would buy from a self seller and split the 7% commission savings.
She was hoping that you were a good enough friend to help her to make some of that 7% commission if you were looking for a house instead of giving it to a stranger (realtor). Not sure about the laws on this though.
acermill said:
Feb 05, 09 at 5:55 amYes, there IS a law in Texas which prevents a real estate agent from working as both seller agent and buyer agent. However, under Texas law, an agent CAN work with both parties to a real estate transaction under what is called ‘dual agency’. Texas Senate Bill 314, effective September 1, 1993, adds that under Dual Agency the licensee is obligated to treat both parties fairly and impartially.
In a nutshell, ‘dual agency’ requires that the agent represent NEITHER party’s interests over the other. Hence, what you get is no actual representation, and the seller doesn’t get representation either. The agent basically acts as an intermediary.
If you want actual representation as a buyer, insist that the agent in question clearly contract with you to work to represent you.