Wednesday, August 3, 2016

To "DUAL or not to DUAL"

Virginia law allows for disclosed dual agency (representation) in a real estate transaction. That means the same real state agent may represent BOTH the buyer and seller in the SAME transaction.
My only question is:  would you hire an attorney to represent both the Commonwealth against you, and the same attorney to represent you in a court of law?  The short answer is - you can't!  Provisions have been made by the Commonwealth to ensure full loyalty to one party - either for you, or against you. Now, that said, we don't anticipate a real estate transaction to get as combative as a court scene can. However, we hear stories too often, (after the fact) of how one buyer or seller in the above scenario felt  abandoned by their shared agent and would never do it again..  Hmmmm.... who couldn't see that one coming? 
Why do buyers and sellers agree to this?  Too often to save money.
The consumers may have been told there will be a discount offered in compensation to the agent involved should only that singular agent be involved in the transaction. Again, the analogy: should it save me money to have one attorney represent the Commonwealth, and that same attorney represent me in a court of law, would I do it? I think most would think long and hard on if that was a sound decision. Did the explanation go beyond the reduced compensation? Were the required forms used and explained well?  Have all the details been advertised openly in MRIS for all agents to see those details in the event of a competitive situation? 

At Hanrahan Properties, as a matter of policy, we will not represent both sides to a transaction.  We can assist the other party without representing them. Feel free to call to discuss how to be fully represented in any transaction.