Agent Representation Question

Agent Representation Question

Member since 2021 · 8 posts · 6 votes

Hello All,

I have an investment property that I am looking to sell. I connected with a local agent and discussed price, marketing, etc. I entered into a listing agreement with the agent.  

Shortly afterwards, the agent advised that her sister was interested in purchasing the property and that she would be an unrepresented buyer. The sister submitted an offer and the contract included the personal interest disclosure nothing the sister. However, the contract also listed the sister and my agent on the deed.  

I raised a concern about whether I could be properly represented in such a transaction.  The agent's broker suggested that my agent become a facilitator or that I myself am shifted to an unrepresented seller.  

I'd appreciate any thoughts on how I can protect myself as a Seller in this scenario. Thank you 

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  • Benjamin AakerPro Member
    Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
    4w

    Are you using an agent to help find buyers, for their knowledge and expertise, or both? If it is just to find buyers, then you have one, and your agent should release you from your agreement and step aside. This also means you won't be paying the commission. This might not be palatable to your agent, however. 

    Having both the sister and your agent on the deed is a clear conflict of interest. You are correct in that you can't be properly represented in this transaction. The sister will have to not buy the property, thus freeing you and your agent to find another buyer, or the sister buys and your agent does not represent you. 

  • Candice CoatesPro Member
    New to Real Estate · DMV · Member since 2022 · 53 posts · 45 votes
    3w

    This sounds like a dual-agent scenario, and there should be someone else in her brokerage to facilitate this deal. She did the right thing by letting you know she is representing her sister, but she is also part of the deal, with her being on the deed.

    From Google:

    Dual agency is when a single real estate agent or brokerage represents both the buyer and the seller in the same property transaction.

    How It Works

    • Neutral Role: The agent must remain neutral and cannot fully advocate for either the buyer's or the seller's financial best interests.

    • Information Sharing: Instead of acting as an exclusive negotiator, the agent acts more like a coordinator or facilitator for paperwork and communication.

    • Legal Requirements: Both the buyer and seller must give informed written consent before dual agency can take place. It is strictly banned in several states (such as Florida, Texas, and Colorado) due to potential conflicts of interest.

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3w

    Seems a little off. I don't love how the agent was fully honest upfront. If she purchases property with her sister that's no harm but should of been discussed on the front end. My biggest concern would be the value and if you are truly getting the most. Often the MLS will have you net the most even with listing "As Is"

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