“Is it legal for agents to represent both the buyer and seller? How can they possibly do that?”
Answer:
Great question. This “dual agency” is legal in California and most other states as long as it’s disclosed.
The downside is that some agents abuse the situation. For example, the buyer or seller may tell the agent their bottom line and the agent could reveal it to the other party. Unfortunately, this happens all the time.
On the other hand, this can happen even when the agent only represents one party. I can’t tell you how many times, by asking the right questions, I get other agents to spill their guts about what price their client wants to buy or sell for. (BTW, it’s perfectly ethical for me to probe for this information.)
Back to dual agency…
You’d expect me to say this, but I would never abuse a client’s trust. Nevertheless, to avoid even the appearance of this, I typically will not represent both parties in a transaction. If someone is interested in one of my listings, they’ll work with another agent on my team.
Does your San Diego real estate agent care more about you or his commission check?
