Dual Agency Scenario

[Trace Garretson]

Hello and thank you to anybody who helps me understand this a little better.

I am currently working through an online school to get my real estate license. It has been brought to my attention that in my state of Colorado, dual agency, or representing both parties in a deal is illegal here. I had a realization that this could be an issue I may come across.

For example: Imagine I have investor friends who are always looking for investment properties. Now imagine I am also marketing myself to help people sell their homes. When a client asks me for help in selling their home, if it turns out to be a great investment property, how would I sell it to an investor friend? Would I just give up that half of my commission and let the buyers agent get a free payday? (even though i constructed the entire deal). I guess a better question is: How would I maximize my commission without breaking any rules?

[Russell Brazil]

The reality is you end up in this situation very infrequently. In fact  I bet that it doesnt happen for at least the first 5 years you are in the business.

But if it does, just refer your buyer to a colleague and collect a referral fee.