We have become in the process of hiring

We have become in the process of hiring an exclusive dealer to represent us leasing office space for just a new corporate headquarters. He talked about the possibility of dual agency in dealing with this assignment. What is dual firm and how would it affect us?

Quoting from the New York Department of Express, "Dual agency arises when a property broker or salesperson represents unfavorable parties (e. g. a consumer and seller) in the same deal. "

This is a very serious issue that will need close examination. If you hire an exclusive agent, you are acting as a primary. Your agent, by definition, is actually a fiduciary, whose fundamental duties include things like good faith, undivided loyalty, and total and fair disclosure. Further from the Counsel's Office of the New York Point out Department of State, "Such obligations are imposed upon real estate licensees by license law, rules and regulations, agreement law, the principals of the legislation of agency, and tort law... The object of these rigorous standards regarding performance is to secure fidelity through the agent to the principal and insure the transaction of the business belonging to the agency to the best advantage of the key. " In other words, all actions carried out by your agent, in word in addition to deed, must be in your best interests.

As your exclusive agent, your broker need to reveal to each property owner that he represents your interests, and not those of the home or property owner. His job is to have the best possible terms on your behalf. If your dealer also exclusively represents the property owner (seller or landlord), the discord is obvious. What is more subtle may be a situation in which the property is exclusively represented by a salesperson or dealer within the same firm as your dealer. This is more likely with larger broker agent agencies. From the point of view of the law (and NYS Department of State), the particular brokers/salespersons are "one and the same" entity when determining dual company conflict.

Remember that from the definition of firm comes the concept of undivided loyalty. Quite simply, the same brokerage agency cannot symbolize both sides of the transaction unless a very explicit document is signed simply by both parties, acknowledging that, among other things, they are really waiving their right to an agent's undivided loyalty.

Since sign company fast turnaround fiduciary responsibility and undivided loyalty are two of the major reasons to hire an exclusive broker in the first place, I would recommend that you think long and hard about signing a document which allows your agent to take actions that are not in your best interests. You are under zero obligation to sign a dual agency agreement.

Since you have not however hired your exclusive broker, an individual practical way to address this issue is to ask for a list of properties represented by the identical agency. If any of those houses seem to meet your requirements, you will face the truth of dual agency, and may much better served by hiring a different broker agency.