Limited agency occurs when the Real Estate Agent represents both the seller and the buyer in a transaction. In this situation, both parties are made aware that the same agent is handling both sides of the transaction, and there is a limited agency agreement that they would both sign off on.
The agent is not to disclose the following information to either party with out informed consent, in writing of both the buyer and seller:
1.) That a buyer will pay more than the offered purchase price
2.) That the seller will accept less than the listed price
3.) What motivates a party to buy, sell or lease the Property
4.) Any material or confidential information, except adverse material facts or risks actually known by the Agent concerning the physical condition of the property and the facts required by statute, rule, or regulation to be disclosed and that could not be discovered by a reasonable and timely inspection of the property by the parties.
5.) Other terms that would create a contractual advantage for one party over another party.
While some people thing it’s a negative to work with one agent, others find it to be a positive.
From my perspective, as a Realtor, I feel it is a bit easier for me, because I know where I am, I don’t have to place phone calls or send emails for status updates to another agent, because I know what they are.
As a Realtor, I have represented numerous buyers and sellers, and whether I am only working one side of the transaction or both, my goal is to make sure that my client gets the desired result for each transaction. If representing a seller, I would never tell a prospective buyer or buyers agent that my seller would be willing to go lower- as that would put my seller at a disadvantage. Also when representing buyers I would certainly not tell the sellers agent that my buyer would pay more than what they offered for the property, because that would put my buyer at a disadvantage.
Negotiating a real estate transaction does become emotional at times, and I think that whether there is one agent handling both sides, or two agents, in the end if everyone walks away from the closing table feeling like they were treated fairly, then everyone has done their jobs, and done them correctly!
