There are two types of listings that are allowed in the MLS:
1. Exclusive Right to Sell: A listing contract under which the owner appoints a real estate broker
as his or her exclusive agent for a designated period of time, to sell the property on the owner’s
stated terms, and agrees to pay the broker a commission when the property is sold, whether by
the broker, the owner or another broker.
2. Exclusive Agency: a listing contract in which an owner appoints a real estate broker as his or
her exclusive agent for a designated period of time to sell a property, on the owner's stated terms,
for a commission. The owner reserves the right to sell without paying anyone a commission if he or
she sells to a prospect who has not been introduced or claimed by the broker.
What is Dual Agency:
Dual Agency in a real estate transaction means the listing broker represents both the
seller and the buyer. A dual agent must not disclose confidential information to either party and
must operate in a hands-off manner. A dual agent cannot get the highest price for the seller and
the lowest price for the buyer -- it is impossible.
Dual agency can happen even if the buyer is represented by an agent other than the listing agent
if that agent is also employed by the same broker. It is the employing broker's relationship with
the seller that determines dual agency.
Dual agency occurs when the listing agent selling a home also serves as the buyer's agent.
In most cases, it's not a good idea for one agent to represent both parties in a real estate transaction.
The listing agent's job is to sell a home at the highest price; the buyer's agent aims to negotiate the
lowest price for his buyers. In this case, the agent and his client's interests aren't aligned. Some buyers
feel that a dual agent will be more motivated to write an offer on his own listing since he'll get double
the commission from both sides of the deal. This could be a possibility, but chances are the buyers
won't get the home for the best price when working with the listing agent.
