We’ve created a little bit of a buzz about our policy of avoiding “Dual Agency” by not representing a buyer and a seller in the same transaction. We know it’s extremely rare in Hawaii’s real estate market for a brokerage to have a policy against this, but it’s born out of our commitment to service. Most real estate brokerages in Hawaii will readily forego the fiduciary responsibilities of loyalty and obedience to their clients in order to do what’s called a “Dual Agency” transaction in which they “represent” both the buyer AND the seller in the same transaction.
Dual Agency ethically requires an agent to be “neutral” in that transaction. For example, the agent may no longer assist a client with negotiations, or take any action that could conceivably put one party’s interest ahead of the others. As a result, the experience that consumers expect when buying or selling property is no longer possible… Simple acts of agency, like providing feedback on a purchase offer or even suggesting that the buyers see the house at a certain time of day could be construed as a breach of ethics. Needless to say, conflicts arising out of Dual Agency situations make up a large portion of the ethical complaints and lawsuits related to Real Estate transactions.
Hawaii Life was originally a Buyer’s Brokerage. We learned from that experience that people don’t want a ‘neutral’ party handling their real estate transaction. They want a full-service real estate broker working to advance their best interests. So, Hawaii Life Real Estate Services is committed to complete representation in which our fiduciary responsibilities of loyalty, obedience, and confidentiality are never compromised. Our customers, potential clients, and existing clients, whether buying or selling, have responded extremely well to our commitment to this policy.
Katie Minkus | Sep 9th, 2008
At Lava Rock Realty, we have the exact same policy, and are perhaps the only Big Island Broker to do so. This too was born from a desire to actually serve our customers and not simply shuffle paperwork and collect commissions at closing. There are several BIG Brokerages on the Big Island (who shall remain nameless) who’s take on this is a bit more sinister - instead of authorizing “dual agency” they simply make the buyer a “customer” WITHOUT DISCLOSING THIS TO THE BUYER! Completely unethical and illegal, but these are the “big boys” so who is going to complain? Not us. At Lava Rock Realty we’re simply too busy serving our clients to bother worrying about the competition - we’re conducting our business practice out of our moral center, which means keeping alive the concepts of agency, fiduciary duty and true care for our clients. The fact that we are often “picked on” by these “big boys” only serves to remind us that were we not doing something right, we wouldn’t be attracting so much attention! It’s difficult to be an agent of “change” but we are committed to changing the Real Estate Industry in Hawaii - and leading by example.
Great job, Matt and Hawaii Life - you are to be admired and rewarded for your ethical and moral stance. Together, we CAN change this industry. Warm aloha,
Katie Minkua, R (BIC). http://www.lavarockrealyc.om
Joel Stern | Nov 25th, 2008
I found this website by chance while doing research on the harmfulness of dual agency, and totally endorse the views expressed above. I myself was victimized in 2005 by a sham buyers agent working for Weichert Realty of Maryland, who switched roles without my informed consent at the very last moment to become a sellers agent. If you want to learn more about my case, go to Google and type in my name “Joel Stern”, then “Weichert”; you’ll find many blogs and websites about my lawsuit. Contact me if you’d like further information, which could greatly benefit unwary consumers in the housing market.
Mike (Dallas) | Jan 2nd, 2009
Yeah i am kinda the same way. When someone calls off my for sale listings i will give them to one of my other agents in my office. I dont want to work both side. To much risk
mel lissner | Feb 11th, 2009
hi from a “jersey boy”………..it’s a pleasure to see “ethic” and ethical thinking in our industry………we need a central “university” type foundation where respected practitioners have the support of academics who are respected nationally……….the sub prime fiasco even topped the dual agency dillema……..good luck in all your endeavors………. sincerely, mel
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Prices Drop 50-60% On Mauna Lani Resort Building Sites | HawaiiLife.com | May 14th, 2009
[...] Developer agents are no different than any other listing agent. The represent the Seller, and have fiduciary and confidentiality obligations to their client. However genuinely nice and helpful they are to you as a prospective buyer, technically you are an unrepresented customer. Even if they could promise to also represent you as a buyer, there are inherent conflicts in dual agency, which is why we have a policy against it at Hawaii Life. [...]