Out of all the things to consider when buying a home in New York, taking the time to choose the right real estate agent should be near the top of your list of priorities. Most people are aware of the benefits of working with a remarkable real estate agent. You get a representative who understands your goals and boundaries who will protect you from inadvisable situations. A good agent undoubtedly makes the home-buying process less intimidating in an incredibly challenging market.
The real estate industry has evolved. Buyers now have more options to pick from beyond the traditional model of agency. real estate transactions usually entail a buyer and seller who each have their own respective realtor throughout the showing, negotiation period, and final closing of a transaction. In typical situations, the agent who works on behalf of a buyer or seller has the obligation to in a way that reflects their client's best interest.
In recent times, real estate agents are turning to an unconventional method of representation known as “dual agency.” A dual agency consists of a who represents both a buyer and a seller within a transaction. This arrangement is common in relatively small real estate markets, but it sometimes occurs at large real estate brokerage firms. Dual agency is legal in New York, but a written disclosure must be consented by both the buyer and seller in a transaction to confirm they both know they're essentially sharing an agent. This also means that agents are to inform both parties of the potential implications and disadvantages of this arrangement before they commit.
I've had clients ask me for more information about this form of representation, and their questions are posed for good reason - there is a lot of misinformation coated in realtor jargon concerning what dual agency is and how it works. In most cases, clients reiterate the same question: How is an agent supposed to act in my best interest if they're working with the other party? The simple answer is that they can't. According to a statement released by the New York Office of General Counsel, dual agency requires both parties to give up “their right to an agent's undivided loyalty.”
Don't get me wrong, there could be advantages. Sharing a real estate agent with an opposing partner would definitely present an opportunity for more consistent and clear conversation, and in some cases, it leads to a lower commission rate for a seller. But if you're planning on buying a property, especially for the first time, you should be wary.
Contact New York Real Estate Attorney Melvin Monachan Today
For more information about dual agency, your real estate transaction, and potential legal representation, contact New York real estate attorney Melvin Monachan. He has extensive experience representing both buyers and sellers in various transactions. Contact his firm today by filling out an online contact form or calling (347) 620-0565.