Buyer agent's office holds listing

6 years ago

last modified: 6 years ago

We have a buyer-only agent, but the listing agent for a property we may be interested in is in her office. In fact, the listing agent is a partner in the named office, e.g., the listing agent is "Jones" of Smith & Jones Group of Major Realty Company. As a result, she says, she can provide us with whatever factual info we want, but cannot advice us on an amount for an offer. This is an issue for us.

It's commonly called a "seller's market," and our agent tells us homes in this particular development "on average sell for 98% of listing price." No idea if that average % includes new construction homes which would skew the results, must ask out agent that. This particular home has been on the market for 70 days with no price change.

We are going to see the home for the second time next week (we live out of town and can't get there sooner) and will make a decision whether to submit an offer. But I find it problematic that our buyer agent cannot advise us on price.

Others who've been through this, any thoughts?

Featured Answer

ncrealestateguy

6 years ago

Mary,

You need to check your Buyers Agency Agreement that you signed when hiring this agent. You need to find in there if you agreed to Dual Agency or not. Here in NC, you would have had to initial beside the paragraph that says you allow your agent to perform Dual Agency. If you did give her the permission to act as a dual agent, then you could explain to her that you are not comfortable with the scenario. In this case, the Broker In Charge can appoint her as a Designated Agent, where the Listing Agent wholly represents the seller and where your agent is designated to represent your best interests wholly. This is how I would handle the situation.

She is correct by telling you that she has to act as a dual agent, because all listings belong to the office.

Below are the rules of a Designated Agency here in NC. Your location may be diferent.

"Understand that “designated agency” is a subcategory of dual agency that is not
available to all brokers. Designated agency, which is merely a method of practicing dual agency,
was first authorized by Commission rule in 1997 to permit brokerage firms practicing dual
agency to handle their clients in a slightly different manner than is the case with standard dual
agency. Unlike standard dual agency, designated agency was created by rule and was unknown
at common law. Designated agency is intended to provide a mechanism for firms practicing
disclosed dual agency to restore to their clients some of the representation and advocacy of client
interests that is lost with standard dual agency.

Under the designated agency option, a firm that is acting as a dual agent because it has
agency agreements with both the buyer and the seller in a particular transaction, continues to be
a dual agent, but may “designate” or assign one or more of its affiliated broker(s) to represent
only the interests of the seller and another broker(s) to represent only the interests of the buyer.

An individual broker shall not be so designated and
shall not undertake to represent only the interests of one party if the broker has actually received
confidential information concerning the other party in connection with the transaction.

When a firm acting as a dual agent designates an individual broker to represent the buyer, the
broker so designated shall represent only the interest of the buyer and shall not, without the
buyer's permission, disclose to the seller or a broker designated to represent the seller:
(1) that the buyer may agree to a price, terms, or any conditions of sale other than those
offered by the buyer;
(2) the buyer's motivation for engaging in the transaction unless disclosure is otherwise
required by statute or rule; and
(3) any information about the buyer which the buyer has identified as confidential unless
disclosure of the information is otherwise required by statute or rule."

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Comments (6)

Seabornman
6 years ago
Sounds like your buyer's agent can't provide you with the services you need. You'll have to find someone else to represent you. There's more things than price that can be involved.
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mary_md7
Original Author
6 years ago
NCrealestateguy, we signed (Docu-Sign) NCAR 201 and initialed both the first part of paragraph 14d (dual agency) and 14e (designated agent option). We will talk with our agent about it if we decide to pursue this home listed by her office. (She herself does not take listings and is a buyer-only agent, but of course there is the likelihood she learns info in the office from listing agents that should not be shared with us.)
ncrealestateguy
6 years ago
Sounds as though she could be delegated as the designated Agent as long as she has not been told confidential info about the listing... and she probably has not.
homechef59
6 years ago
If you find yourself uncomfortable with the arrangements, you can ask the agent to void the agreement and go your separate ways. While cancellation isn't required, most agents won't want to deal with an already unhappy client. Do not be embarrassed to ask for cancellation, it's obviously not personal.
ncrealestateguy
6 years ago
You should formally cancel the agreement. In case you do go with another agent, and then return with an offer on this property, there will be no dispute over who owes who a commission.