In South Carolina, buyers and sellers in real estate transactions work under a contract. The Contract rules here in SC.
Property listed on the MLS is under a contract: the Listing Agreement between the owner and the listing agent.
A buyer seeks information on the property, contacting the Listing Agent - but the Listing Agent works exclusively for the seller, and is bound by South Carolina law to protect the seller’s best interests - only.
Once conversations are underway, even those where simple questions are asked and answered, the Listing Agent assumes the buyer representation, too – creating a “dual-agent” situation. By SC law, this dual-agency represents no one, because the Agent is bound to serve both parties equally. (Eventually, both parties sign a Dual-Listing Agreement [contract].)
Question:
is the dual-agent REALLY representing the buyer equally to the seller? In most cases, the Agent has no real relationship with the buyer. His/her first allegiance was to the seller, so he just upends that and goes neutral for both parties? SC Contract Law requires confidentiality for parties under contract, but it is so easy to betray the “other side” in general conversation – giving away valuable negotiating information that should be confidential. This is very tricky.
Most likely, the seller is favored by the Agent, because of the existing relationship and the promises he/she made to the seller at the time the listing agreement contract was signed.
As a buyer, would you feel fully represented in this scenario? What is the agent’s incentive to negotiate better pricing or terms for you, the buyer? Paid on commission, most Agents want the highest selling price possible for a high commission, so could attempt dual-agency if possible.
KEY:
Buyers protect themselves up front by having a Buyer’s Agreement with their own Agent, whose job it is to negotiate for them alone, protect their confidentiality, help them creatively as needed to get to the closing with all the terms, conditions and pricing that’s favorable to them (alone).
I’m happy to answer your questions on this or anything else real estate related. Thanks for reading!
