Thursday, May 8, 2008

Dual Agency in NJ - Right or Wrong???

I recently read through a post on Trulia where a seller asked about the pro's and con's of a dual agency agreement. For those who are unaware, in NJ, agents can act in four different ways, depending on who they are advocates for. Principally, people will function as Buyer's agents or Seller's agents, meaning that while they will treat all others fairly, they are working for the best results for whom they represent. In some cases, agents will function as Dual Agents, which means that their real estate agency represents both the buyer and seller. Sometimes, it will be one agent, but most often, it will be two who both happen to work for the same agency. This is legal in the state of NJ as long as there is disclosure and written consent. What ends up happening is that the agent(s) cannot disclosre confidential information that might be helpful to the other party, usually in negotiations. In the end of the day, the agent(s) ends up functioning as a facilitator or mediator.

There seems to be a growing debate on this topic. I may be wrong, be personally, while it's not ideal, I feel it's the best option out there. Granted, you won't get the same kind of representation as you would from a Buyer's or Seller's agent working solely for you. However, without dual agency, losing an agent entirely means you've lost someone whom you've potentially grown to trust, connect with, and perhaps even given confidential information to. More so, that agent may be obligated to use that information against you, because they now represent the other side! (How's that for messed up?)

Is it ideal? No. However, I don't have any better ideas. Anyone else?

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