Dual Agency Real Estate Transaction
Can One Real Estate Agent Represent the Buyer & Seller?
Recently, a potential client came into our office for representation in a commercial real estate transaction. He had contacted a real estate agent who told him the perfect property was already listed with his real estate agency, and negotiations on the real estate property had begun. That would make that real estate agent both the listing and selling agent on that transaction. The potential client had a question: Can one real estate agent represent the Buyer and the Seller on the same transaction?
Usually, the listing agent works for the seller and owes a duty of loyalty and confidentiality to the seller. Similarly, the selling agent works for the buyer and owes a duty of loyalty and confidentiality to that buyer. In a dual agency real estate transaction, the seller and buyer have the same agent, or both agents work for the same broker, creating a conflict of interest.
However, in Connecticut that conflict of interest is not a complete bar against dual agency. Dual agency is permitted in Connecticut, pursuant to C.G.S. § 2-325g. The statute says that Dual Agency is allowable as long as all parties are informed, and both the Buyer and the Seller waive the conflict of interest in a Dual Agency Consent Agreement. Yes, one real estate agent CAN represent both the seller and buyer in the same transaction.
In Dual Agency real estate transactions, it becomes even more important for clients to retain the assistance of a real estate attorney as soon as possible. First, the buyer or seller will want somebody to review the Consent Agreement. Secondly, they will need more protection since the agent is not solely looking out for their best interest.
If you are buying or selling a home, condo, apartment or place of business, contact The Law Office of Eugene Glouzgal. We charge very competitive flat fees on closings and our client oriented approach alleviates the stress involved in real estate transactions. Contact us today by phone at 203-794-6691 or by e-mail at Glouzgal@CTAttorney.us.