Dual Agency occurs when a real estate agent is representing both
buyer and seller in the same transaction. Since the 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:
- The Agent will deal with the Buyer and the Seller impartially.
- The Agent will have a duty of disclosure to both the Buyer and
the Seller except that:
- the Agent will not disclose that the Buyer is willing to
pay a price or agree to terms other than those contained in
the Offer, or that the Seller is willing to accept a price
or terms other than those contained in the Listing;
- the Agent will not disclose the motivation of the Buyer
to buy or the Seller to sell unless authorized by the Buyer
or the Seller;
- the Agent will not disclose personal information about either
the Buyer or the Seller unless authorized in writing.
- The Agent will disclose to the Buyer defects about the physical
condition of the property known to the Agent.
The meaning of "Market Value"
The market value of your property is the highest price that the
current market will bear.
Your property's value will often be related to its cost (either
your purchase price or the cost to build a similar new home, less
depreciation). However, depending upon present market conditions
and the demand for the property, its market value can differ significantly
from its cost. An analysis of the current real estate market and
the marketability of properties comparable to yours are therefore
used to gain an insight into the most probable selling price of
your property. Realtors call this process the Comparative Market
When buying or selling a home, ask yourself:
- Have I selected a Realtor based on services or price?
- Have I selected a Realtor because he or she will reduce commissions?
- Is the local market rising, falling or flat?
- Is my opinion of "value" based on the "actual
sale price" of similar neighbourhood properties?