Dual agency is when a real estate agent represents both the buyer and the seller in a transaction. Ontario is currently considering a ban on the practice as part of its 16-point housing plan. Through a spokesman, B.C.’s new superintendent of real estate, Michael Noseworthy, says he’s “very close” to publicly disclosing potential new rule changes on the practice.
I have always had the opinion that an agent cannot get the best result for both sides. How is your agent, as a buyer, getting you the lowest possible price if they are also representing the seller? And Vice-versa, how can that same agent get the seller the highest price? It seems impossible. If both sides of the fence feel like there was too much compromise in the negotiations, there is only one clear winner, the agent who collects the full commission. Some open houses I attend feature 2 agents, (1)the listing agent and (2)someone from their office. This way, if a buyer without an agent shows up, agent #2 can help them write an offer with no conflict of interest. I have always respected this practice.
To some agents, this is their bread and butter, but it seems like they may have to evolve with the times. If the selling agent is the only person who has found a buyer, theyre going to have to refer that buyer to another agent if legislation changes. I, for one, feel like that would spread the love a little more evenly and create a more fair market.