If you plan to buy or sell a home in South Carolina before year’s end, you’ll want to become familiar with various legal terms and concepts associated with such transactions. You don’t have to be an expert; that’s why the experts are there. It is wise, however, to make sure you understand various real estate terms that may be relevant to your situation. For example, do you know what a “dual agent” is, as well as the laws that govern such duties?
In real estate, a dual agent is someone who represents both parties, meaning the buyer and the seller. Think about this for a moment. How can an agent act with your best interests in mind if he or she is also representing the other party? In fact, it is possible and legal. However, a dual agent must fulfill his or her duties in compliance with the South Carolina Code of Laws.
When real estate is sold or purchased by a dual agent
If you’re selling a home, and your agent is also representing the buyer (or vice versa), keep these things in mind to ensure a lawful transaction:
- The dual agent must disclose his or her dual agency to both parties.
- Both the buyer and seller must sign an agreement stating that they are aware of the dual agency, understand it and are okay with it.
- A seller must sign a dual agency agreement before signing a sales contract.
- A buyer must sign a dual agency agreement before writing an offer.
- Agreeing to a dual agency is voluntary; either or both the buyer and seller can refuse consent.
A dual agent cannot reveal information that is against a client’s interest, such as telling a buyer that the seller is secretly willing to lower the price of the home in question. Similarly, if there were to be a bid war, for instance, a dual agent cannot tell a seller that a particular buyer is willing to exceed list price.
Always ask questions before completing a home sale
It’s never a good idea to pursue a real estate transaction (whether as a buyer or seller) without first making sure you fully understand all applicable terms and processes. If you have a question about dual agencies, don’t be afraid to ask. Seeking clarification provides you with necessary details and understanding so that you can make informed decisions.