Types of Agency

There are different types of agency, or representation in a real estate transaction. Designated representation means that the parties to the transaction (buyer and seller) are represented by the same brokerage, but each party has a different agent in that brokerage. For example, Ricky's Rockin' Realtors has a listing that Billy Buyer is interested in purchasing. Billy calls the brokerage...Ricky's Rockin' Realtors and asks to see the house. Andy Agent takes Billy to see the house and they sign an agreement to work together. Billy likes the house and decides to make an offer. The offer is submitted to Sammy Seller's agent...Lizzy Lister. Because Andy and Lizzy work for Ricky's Rockin' Realtors, and they each represent a party in the same transaction, they are considered Designated agents.

Dual representation means that both parties to the transaction are represented by the same agent. So if Billy Buyer contacted Lizzy Lister directly to see the home AND Billy Buyer and Sammy Seller agree that it's OK for Lizzy to represent both of them, Lizzy would be a dual agent. The difference between "regular" agency and dual agency is that Lizzy would act more as a facilitator. Lizzy could explain any part of the contract/transaction that Billy and Sammy didn't understand, but she could not divulge information about the transaction to either party (without consent), nor could she negotiate for either party.