Multiple representation – a single agent representing a home’s seller and buyer – is not an uncommon occurrence in real estate. As long as both parties agree to this arrangement upfront, it can work.

First things first. You need to have a clear understanding of what it means to be the client. The client is the person with whom the real estate agency has a signed representation agreement. The agent and the agency then have a binding contract and obligation to serve your best interests. They are further obligated to make valuable disclosures to you on specific situations.

A customer, on the other hand, signs a customer service agreement. A customer has some real estate knowledge and needs guidance, more than direction. The agency does not have the same degree of obligation to a customer that they do to a client. Additionally, a customer does not require the agency to promote a listing or to protect their interests and the agent does not owe them the same fiduciary duties as a client.

Let’s assume I’m representing both parties in a home sale transaction. My obligation is to protect both your best interests and to see that both parties walk away happy. Since I have full knowledge of any issues with the seller’s home and selling strategy, conversely, I also know the buyers true financial position and mortgage needs. This could spark controversy and a conflict of interest. So, my obligations actually become very clear.

1. I must inform both parties that I am performing a mutual representation
2. I must fully inform you of any differences in obligations this might pose
3. I must put these differences in writing each party can understand
4. I must have both parties consent in writing to the mutual representation
5. Price, motive or terms can not be discussed with either party

Any information either party shares with is safeguarded and confidential. As the agent, I am not permitted to disclose confidential information with the other party. If the other party chooses separate representation, I still maintain the same obligation of privacy and cannot disclose confidential information to the other agent or representative. If either the buyer or seller prefer to have representation by separate agencies, we will discuss your options, and I will release one of you to find another realtor. Either way, my goal is to handle your real estate transaction openly, fairly, and honestly, and to provide you with responsible, upstanding, experienced service.