Greenwich REALTORS® Guide to Dual and Designated Agency
If you're buying or selling a home in Greenwich, understanding how real estate agents represent you is essential. Two common agency structures you may encounter are dual agency and designated agency. Here’s what you need to know to make informed decisions.
What is Dual Agency?
Dual agency happens when one real estate brokerage represents both the buyer and the seller in the same transaction. While this can simplify communication, it also creates potential conflicts since the brokerage has obligations to both parties.
Is Dual Agency Allowed in Connecticut?
Yes, dual agency is legal in Connecticut, but it requires full written consent from both the buyer and the seller. The Connecticut Real Estate Commission requires agents to disclose this relationship and obtain written acknowledgment from both parties.
Key Considerations for Dual Agency:
- Neutral Representation: The agent cannot favor one party over the other.
- Transparency: The agent must treat both parties fairly and equally.
- Written Consent: Both buyer and seller must sign a disclosure form agreeing to the dual agency arrangement.
What is Designated Agency?
Designated agency is an alternative that allows different agents within the same brokerage to represent the buyer and the seller separately. This provides each party with their own dedicated representation while keeping the transaction within one firm.
Is Designated Agency Allowed in Connecticut?
Yes, Connecticut allows designated agency under these conditions:
- The brokerage firm must have clear policies regarding designated agency.
- Both the buyer and seller must be informed and give written consent.
- Each agent must maintain confidentiality and act in the best interest of their respective client.
Benefits of Designated Agency:
- Stronger Representation: Each party gets a dedicated advocate.
- Reduced Conflicts of Interest: Unlike dual agency, each client has an agent fully focused on their best interests.
- Smooth Process: Transactions stay within one brokerage, making coordination easier.
What This Means for You
As a buyer or seller, it’s important to know who your agent is working for and what kind of representation you’re receiving. To ensure you’re making the best decision:
- Ask your agent upfront about their role in the transaction.
- Review any agency disclosures carefully before signing.
- Work with a brokerage that follows ethical practices and explains your options clearly.
By understanding dual and designated agency, you can confidently navigate your real estate transaction. If you have questions about Connecticut’s agency laws, consult the Connecticut Real Estate Commission or speak with a trusted real estate professional.