Part 7 of 7

“The broker who permits the buyer to believe he is acting as the buyer’s agent when the broker has already formed an agency relationship with the seller is a classic example of the “accidental” dual agent. But he is a dual agent, nevertheless. The accidental dual agent creates an express agency with the seller by executing a listing agreement, and he creates an implied agency with the buyer by allowing him to believe the broker is acting on his behalf.”

”Examples of words or phrases often used by real estate brokers that can create implied agency relationships with buyers are the following:”

• “I’ll take care of everything. I’ll handle the sale for you.”

• “This listing has been on the market for six months. That tells me it’s overpriced. Let’s offer $80,000 and see what they say.”

• “Trust me. I’m sure the seller won’t counter at that price.”

• “If the seller is going to insist on a full price sale, I think you should tell him no. Then we can try an offer on the Maple Street house your wife liked so much. I’m sure those sellers will be more realistic.”

• “If they insist on the full $100,000, I’ll remind them that the furnace is 15 years old and the carpet if fraying. That should justify at least a $3,000 reduction.”

OK...enough of the detailed stuff. What does all this mean to real estate buyers and sellers? Simply put: “A real estate broker should have one and only one client per transaction”. In other words, if you want your best interests looked out for and advanced, the agent/firm who works for you cannot faithfully represent you and the other party in the same transaction. What could make more sense.