Massachusetts Continuing Education Course – 2 Credits .This course is an overview of the practice of Dual Agency. You will learn to identify the situations which cause a license to enter into dual agency, the modification to the relationships with each consumer and the duties owed to each client. The required forms and consents will be reviewed and best practices for the timing of their use will be discussed. Risk and liabilities be identified.

1. Dual Agency - RE49R05
Jody O’Brien
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2. CEU Outline
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3. History & Background
l 1980’s
n 1983 FTC study of Buyers and Sellers to determine
if the consumer realized that the real estate agents
worked for the Sellers
n 71% of the Buyers thought the selling agent
worked “for” them
n 74% of the Sellers thought the agent worked “for”
the Buyer
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4. l 1990’s
n Massachusetts enacts mandatory agency disclosure
1991 (NAR recommendations 1991: timely, written,
and meaningful disclosure)
n Originally targeted toward Buyers (Seller agency
disclosure not mandated until 1993)
n 1993 Form changes to allow Buyer Agency
information, disclosure and choice
n Public awareness of representation increases
n Demand for Buyer agency increases
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5. l 2000’s
n Massachusetts adopts Designated Agency
n Change in Disclosure Form
Massachusetts Mandatory Licensee – Consumer Relationship
Disclosure Form
n Consent for Designated and Dual Agency Required
in writing
n Facilitation defined
n Sub Agency requires written acknowledgment of
Vicarious Liability
n and......
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6. l 2010
- Agency Disclosure Investigation
- When would you disclose?
- What relationship would you select?
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7. Types of Agency
l Seller Agency
- Traditional Agency
- Designated Agency
- Sub-Agency
l Consent from Seller
l Specific Language
l Buyer Agency
- Traditional Agency
- Designated Agency
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8. Types of Agency
l Facilitation
- Buyer or Seller
- Duty to accountability
- Confidentiality “unless otherwise agreed”
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9. Types of Agency
l Dual Agency
l Single Agent
l Two Agents
l Traditional Agency Company
l Appointing Agent
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10. Consent and Notice
• Written Consent
–using approved language
–Conclusive Presumption of Consent
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11. • With in the agreements
– Sellers
– Buyers
• Stand alone Form
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12. Timing
• Before occurrence
• No Later Than
• Upfront at time of agreement
–Notice
• Company Policy
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13. Fiduciary Duties
• Obedience
• Loyalty
• Disclosure
• Confidentiality
• Accountability
• Reasonable Care
Dual Agency
• Confidentiality
• Accountability
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14. Don’t Be a Dual Agent
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15. Buyer
• You already represent the
Seller
• Does not request
representation
• They don’t want you to
• You don’t want to
– Who’s interest?
Seller
• You already represent the
Buyer
• Does not request
representation FSBO
• They don’t want you to
• You don’t want to
– Who’s interest?
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16. Proceed in Dual Agency
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17. Buyer
• They have already agreed in
writing
– Notice
• They are already a client
– consent
Seller
• They have already agreed in
writing
– Notice
• They are already a client
– consent
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18. Refer a client out
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19. Buyer
• The Seller is a client and the
buyer does not want to
enter into dual agency
• You have a longer and more
in depth relationship with
the seller
Seller
• The Buyer is a client and the
seller does not want to
enter into dual agency
• You have a longer and more
in depth relationship with
the buyer
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20. Thank you for Attending
Jody O’Brien
The RE/Education Company
Committed to Professionalism in Real Estate through Education
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