2) Seller’s agent & listing broker
3) Dual agency
This choice is tricky for both buyers and sellers as the broker will have to represent both competing parties simultaneously. In reality, this becomes challenging. An ethical agent will have a hard time sharing only information on a need-to-know basis. If a Dual Agent knows that a seller needs to sell and is desperate, this broker can’t share this information with the buyer he represents as well. If the Dual Agent knows a buyer can pay more, he can’t share this information with the seller either.
The bottom line, the broker’s hands are sometimes tied. This behavior makes this Dual Agent somehow less efficient to both sides. Unethical agents will tend to favor a given party in the negotiation, and generally the first party who hired them to sell the apartment. In these conditions, it is hard to respect your fiduciary duties towards both parties. The Dual Agent tends to favor the interests of the seller for many reasons. The seller is his client, and he probably has a personal relationship. Also, the seller client will still be there in case the buyer flakes.
We recommend buyers remain firm in not agreeing to Dual Agency when purchasing a home. In fact, why would you give up your right to free and undivided representation from a buyer’s broker? From a monetary point of view, why would you pay double commission to a listing agent who could or could work for your best interests? Lastly, why would you give up on an opportunity to get some of that commission back via a buyer commission rebate for yourself? Dual agency is like getting paid double for half the work!
4) Advanced Informed Consent to Dual Agency in the real estate NY Disclosure Form
If a seller refuses to accept the Dual Agency, this seller can check both boxes (i) Seller’s Agent as well as (ii) Advanced Informed Consent Dual Agency. If the seller does that, the seller’s broker will only represent the interests of the seller until the Dual Agency happens. Similarly, if a buyer signs the Dual Agency, then the seller has already decided to accept it.
This is sometimes an advantage for the seller in a Full Service for a 1% listing. Indeed, the seller has the opportunity to save more in commission if the listing Agent can convince the buyer to remain unrepresented.
5) Dual Agent with a Designated Sales Agent in the real estate NY Disclosure Form
This concept is valid for the giant brokerage firms (Corcoran, Douglas Elliman, Compass, etc.) The brokerage is a Dual Agent. However, there are separate individual brokers representing buyer & seller. This example frequently happens when a separate agent of a given brokerage happens to represent a buyer interested in a unit listed by another seller’s agent of the same firm. In this case, the brokerage knows information about both sides of the deal and needs to stay neutral.
6) Buyer’s Agent
The buyer’s agent is the most common relationship for a home buyer to have with a broker. There cannot be any confusion as to whose side the agent is on. You can also earn two-thirds of your broker’s commission through NestApple. This way, your incentives are aligned with your Agents.
You can just refuse when the seller’s broker’s hand you that NY Disclosure Form to sign while checking the box “Dual Agent.” Brokers must present the form to their clients, but you are not required to sign it.
7) What if I have already signed a real estate NY Disclosure Form?
It does not matter. If a broker made you sign a NY Disclosure Form and checked Dual Agent, you always have the right to get representation by a Buyer’s Agent later. We remind buyers that the purchase price includes the broker fees and the cost of your representation. The buyer and the seller are paying for the broker fees. Buyers should not give away the benefit of representation and potentially the cashback.
A seller’s broker would be kind of stealing from you if you agreed to dual agency because you could win some of this broker fee back via Nestapple cash back rebate.