What You Should Know About Multiple Representation
When the buyer and seller are clients of the same real estate brokerage firm, it’s known as multiple representation, formerly referred to as “dual agency”.
This means that one agent from a real estate company will be the listing agent, working for the seller as the client, and another agent (sometimes the same agent) from the same real estate company will be the buyer’s agent, working for the buyer as a client.
Multiple representation can be tricky because a brokerage’s loyalty is divided between buyer and seller, who undoubtedly have opposing interests within a single deal.
Therefore it is absolutely essential that a multiple representation relationship be properly documented. Representation agreements specifically describe the rights and duties of everyone involved and any limitations to those rights and duties.
The brokerage will know about the seller’s home and sales strategy. This could be valuable to you when you put together an offer. On the other hand, it has information about your circumstances that could be useful to the seller during negotiations. You can see where a conflict of interest could exist.
Confidentiality is very limited under multiple representation, since the brokerage must treat both clients equally and impartially.
Purchasing a home is a large monetary investment. Make sure your interests are being represented completely. You never want to be in a situation where the loyalty of your real estate professional is divided. Please contact us or call us on 604 695 1000 if you have any questions or concerns.