Here’s a short video of my interpretation of Multiple Representation.
Multiple Representation in a real estate transaction has been, and can still be, a controversial subject. Yet, it is more common than most people think. Just think about it…when you are interested in a property, who do you call…usually the listing Realtor. Why, because their name and contact information is on the sign; their name and contact information is on MLS; and their name and contact information is on anything associated with that listed property. You expect that realtor to be the expert on that property (and they should be). So, it’s natural to contact the listing realtor. Once you ask that realtor, or any other realtor in the same brokerage, to work for you on that property, you are in a Multiple Representation situation.
Multiple Representation is AN ACCEPTABLE PRACTICE, and as such, the rules of Multiple Representation are on each and every representation agreement, where both the seller and the buyer agree to the possibility of being in a Multiple Representation situation.
Here’s the link to a Listing Agreement (Clause #3, Page 2): http://www.davismclay.com/ListingAgreement.pdf
Here’s the link to a Buyer Representation Agreement (Clause #3, Page 2): http://www.davismclay.com/BuyerRep.pdf
Multiple Representation is not about a realtor’s personal greed, which some will have you believe…it’s about doing the job they have been hired to do. Which is to sell the properties they have listed, and, help their buyers find the right property to buy. And sometimes, the “right property” is a listed property within the realtors own inventory or brokerage’s inventory.
An unethical or “greedy” realtor is always going to be an unethical or “greedy” realtor, no matter how you cut it.
Not all realtor’s should be painted with the same brush.
Others say Multiple Representation is a conflict of interest. However, the rules of Multiple Representation are such that any realtor (or brokerage) must work in the best interest of both the seller and the buyer. Realtor’s are “supposed” to put the best interests of their clients before their own interests…and a good realtor always does this, no matter what the situation.
Hire a good, reputable realtor and no matter if you are in a Multiple Representation situation or a “Single Representation”, that realtor is always doing what is in your best interest!
If you want “your own independent representation”, 1) don’t call the listing realtor (or anyone else in the same brokerage) to show you the property, or, 2) if you do call the listing realtor tell them upfront that you want or have “your own independent representation” (it’s only fair) , and 3) tell “your own independent representative” that you don’t want to be in a multiple representation situation. This is important because “your own representative” may in fact end up showing you and selling you one of their own brokerage’s listings—which puts you in a Multiple Representation situation.
Kathy Dimaline is a Real Estate Broker for RE/MAX Grey Bruce Realty Inc. The comments on this Blog are the opinions, only, of Kathy Dimaline and do not constitute any legal advice or legal opinion and does not represent the interests or opinions of RE/MAX Grey Bruce Realty Inc., brokerage.