Dual agency occurs when a Designated Agent is representing both the buyer/tenant and the seller/landlord in the same transaction. Since the Designated Agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.
If you find yourself involved in a dual agency relationship, before making or receiving an offer, both you and the other party will be asked to consent, in writing, to this new limited agency relationship.
This relationship involves the following limitations:
1. The Designated Agent will deal with the buyer/ tenant and the seller/landlord impartially;
2. The Designated Agent will have a duty of disclosure to both the buyer/tenant and the seller/landlord except that:
- the Designated Agent will not disclose that the buyer/tenant is willing to pay a price or agree to terms other than those contained in the offer, or that the seller/ landlord is willing to accept a price or terms other than those contained in the listing;
- the Designated Agent will not disclose the motivation of the buyer/tenant to buy or lease or the seller/landlord to sell or lease unless authorized by the buyer/ tenant or the seller/landlord;
- the Designated Agent will not disclose personal information, not otherwise necessarily disclosed in the transaction documentation, about the buyer/tenant or seller/landlord to the other party unless authorized in writing.
3. The Designated Agent will disclose to the buyer/ tenant defects about the physical condition of the property known to the Designated Agent