The Problem with Dual Agency

30 November 2016
Remax-Condos-Plus

Dual Agency seems to be today's hot topic. Most people think it occurs when a Sales Person represents both Buyer and Seller. In realty it occurs when one or more different Sales People from the same Brokerage represent the Buyer and the Seller. When there are different Sales People from the same Brokerage involved, we should really rename this, Designated Agency.

This is where RECO, The Real Estate Council of Ontario, should step in and introduce new rules to cover each case. The other problem is that a Sales Person acting in Dual Agency knows all of the offers submitted. Under the Real Estate and Business Broker's Act, you could only disclose the number of the offers and who are the Sales People presenting these offers.

Why not change the rules?

With competing offers, lets disclose all the terms of the offer; the price, conditions, closing date, etc. to all the Buyers. That would level the playing field and create greater trust in the process. Realtors® cannot make this change alone. Only RECO can do it, and Realtors® have no control over RECO, that's the Ontario Government's call.