Effective June 15th of 2018, Dual Agency has been banned in BC by the Real Estate Council of British Columbia. This has major implications to buyers & sellers of real estate in Vancouver, and here’s our take on the issue.
Dual Agency is a Conflict of Interest
Would one lawyer act for the defendant and plaintiff at the same time to strike a deal? That would be a terrible idea for both parties, as one person cannot truly represent the best interest of both parties. A similar reality exists in the real estate world. The owner wants to sell their home for the highest dollars possible, while the buyer is seeking to lower their purchase price. These two key motives directly contradict each other.
Dual Agency Exposes Too Much
When both buyers and sellers have their own Realtor®, each real estate agent is bound to look out for their respective clients’ best interest, while protecting their confidentiality. In a dual agency situation, it’s like one party seeing the opposing player’s hands in a poker match, depending on which direction the Realtor® wants to go.
Dual Agency Ends Up Working For the Wrong Party
The biggest interest looked after, often, is neither that of the buyer nor the seller – it’s the agent him/herself to complete a deal and earn the commission cheque in the shortest time period possible.
Dual Agency |
Sole Agency |
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Ensure you are protected by having a Realtor® on your side when you are buying.
Protecting Consumers and the Integrity Of the Industry
The fundamental advantage of each real estate professional representing one party’s interest, and that alone, is now abundantly clear. Without such protection, questionable transactions such as shadow flipping in Vancouver was allowed for many years leaving home sellers feeling cheated. In other cases, the Realtor® would agree to rebate a portion of his/her commission to double-end (an industry jargon for a real estate transaction completing under Dual Agency) the deal, which leaves questions on whether this was in the best interest of both buyer & seller, or just one or two of these parties.
The new ban on Dual Agency ensures that there will be significantly less “questionable” transactions pushed through by real estate agents, and it makes it much more likely that each real estate professional will stay true to their course of looking out for their buyer or seller’s best interest, and that only.
Still, There Is A Loophole – Don’t fall for it!
One way a real estate agent could skirt the ban on Dual Agency is to pressure the buyer to become an unrepresented party. This is truly a nightmare scenario where you are left on your own accord, and the real estate agent has absolutely zero loyalty for your best interest – in many ways, worse than a Dual Agency scenario.
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With Buyers Representation |
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In Your Corner, On Your Side, Always
A dedicated buyer’s agent through a simple, hassle-free, cost-free agreement is one of the easiest and best ways you can be protected as a buyer in this hectic real estate market. The buyer’s agent is somebody that is 100% on your side, with your best interest, always, while leaving all other options open for your best interest.
Contact Tim & Shannon now if you want to discuss the benefits of working with us as a dedicated Buyer’s agent!
Tim Walters |
Shannon Walters |