But what happens when one real estate agent represents both the buyer and the seller in a real estate transaction? Such an agent is known as a “dual agent.”

 

 

Although it is illegal in some states for a real estate agent to act as a dual agent, it is legal in Las Vegas, so long as the agent obtains informed consent from both the buyer and seller.

 

 

What are the legal requirements for an agent to serve as a dual agent in Las Vegas?

 

In Las Vegas, a real estate agent is required by law to provide written disclosure of the duties that licensee owes to all parties in a real estate transaction.

 

Note that this is not limited to the parties represented by that agent. In Nevada, a duty is also owed to unrepresented parties as well.

 

Specifically, a real estate agent in Nevada owes to all parties in the transaction, whether represented or not, the duty to act honestly as well as to disclose all material facts the agent knows or should know.

 

The agent must also disclose each source from which the agent expects to receive compensation in the transaction.

 

Additional duties owed to clients

 

In addition, a Nevada real estate agent owes additional duties to their client. It comes as no surprise that these duties include confidentiality, presenting all offers made by or to the client, and advising the client to seek out an expert if the subject matter of a client’s inquiry or issue is beyond the expertise of the agent.

 

When a real estate agent in Nevada becomes a dual agent, then, these extra duties are owed to both buyer and seller.

 

Under NRS 645.252(1)(d), a dual agent in Nevada is required to give a written disclosure to each party that he or she is representing both the buyer and the seller.

 

The parties must each give their written consent to the dual representation before the licensee can continue to act as an agent for either of them.

 

Under the code section, the written consent signed by the parties must include the following:

 

• A description of the transaction
   

• A statement disclosing that the agent is acting for more than one party to the transaction who have competing interests, and that the agent has a conflict of interest as a result.
   

• A statement that the agent will not disclose any confidential information concerning any client for a period of one year after the end of the representation, unless required to do so by a court of law or the concerned party gives written consent for the disclosure.
   

• A statement that the client is not required to give consent to the licensee acting on behalf of that client.
   

• A statement that the client understands the consent being given and has not been coerced.

 

Dual agency cannot be imposed upon sellers without their explicit agreement. Prior to engaging in a real estate transaction, sellers are required to sign a listing contract that includes a specific section pertaining to dual agency.

 

Within this section, sellers are given the option to agree or disagree to the concept of dual agency.

 

Due to this reason, it can never be forced upon the sellers to proceed with dual agency without their prior consent, as the decision to proceed alone lies entirely with them, and it cannot be forced upon them by anyone.

 

One agent representing both buyer and seller

 

In real estate transactions, dual agency refers to a situation where a single agent represents both the buyer and the seller in a sale or rental transaction.

 

While it may seem convenient to have a single agent handle both the purchase and the sale of a property, it is important to recognize that this practice raises certain ethical and legal concerns.

 

The principle of dual agency states that an agent must disclose all relevant information to both the buyer and the seller, ensuring that both parties have a fair understanding of the transaction.

 

However, the conflict of interest inherent in representing both parties simultaneously can create challenges for the agent and may compromise the objectivity of the representation.

 

Dual agency cannot be forced

 

To protect the interests of the sellers, it is important to ensure that dual agency is not forced upon them without their explicit consent. By including a section in the listing contract specifically addressing dual agency, sellers are given the opportunity to make an informed decision about whether they wish to agree or disagree with the practice.

 

This section allows sellers to review the potential benefits and drawbacks of dual agency and make an informed decision based on their own circumstances. It provides a clear disclosure of the potential conflicts of interest that may arise and empowers sellers to make an informed decision that aligns with their best interests.

 

No one can force or pressure them into making a decision that they may not fully understand or feel comfortable with. The choice to engage in dual agency is entirely up to the sellers, and they must make their own determination based on their own circumstances and personal preferences.

 

The decision to proceed with dual agency lies solely with the sellers, and it cannot be forced upon them by anyone at any time.

 

Las Vegas Real Estate Attorneys are ready to help with any real estate matter, such as business litigation, business formations, contracts, property disputes, construction disputes, title matters, bankruptcy, foreclosure, timeshare litigation or student loan adjustments.

 

To learn more, visit Las Vegas Real Estate Attorneys or call 800-233-8521 for a free phone consultation.

 

Source: Fiduciary Duties of Real Estate Agents - Las Vegas Nevada Real Estate Attorneys