Double ending deals, also known as multiple representation, is often misunderstood. A double-ended scenario exists when a real estate agent’s brokerage represents both the buyer and the seller in a single transaction.
When the property sale closes, the agent responsible for the deal receives both shares of the commission. This is legal in Ontario as long as all parties involved consent to the terms in writing.
However, it is challenging to have fair representation when an agent is acting on behalf of both parties. This situation occurs most often when buyers visit open houses without representation and make an offer on the property through the listing agent.
It’s important to remember that usually the listing agent is bound under contract to represent the seller’s best interests as a client. A client relationship means the listing agent owes their seller fiduciary duty, lawful obedience and must promote and protect their best interests.
In a double ended-commission scenario a buyer is usually represented as a customer. This means they are only owed fairness, honesty and integrity. They are not bound to owe buyer customers fiduciary duty or represent their best interests.
Although some buyers are under the impression that there may be a reduced price, this is rare and/or comes with a lack of proper representation.
As a buyer, finding an agent to solely represent your interests better protects you from risk and liability and allows you to receive more strategic and specialized guidance.
If you’re the seller, the situation may be less complicated as long as you’re assured that your agent is focused on your interests.
Your listing agent may reduce overall commission if they represent both parties. This needs to be clearly disclosed to any competing buyers and can make things very complicated with cooperating agents.
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