If you plan on buying Real Estate, it’s possible that you could encounter a dual agency scenario where one agent will represent both you and the seller at the same time.
Dual Agency situations are rare in California, but they do occur, and the court system is beginning to crack down on them since dual agencies can also lead to conflicting business relationships.
For example: the California Supreme Court recently found that a brokerage company in California, working as a dual agency (representing the buyer and seller), had a fiduciary responsibility to the buyer who purchased a mansion in California for $12.25 million only to find out that the home had less square footage than was originally advertised to him.
How Will Property Management Be Affected?
As it relates to Residential leases, it is important for Tenants to understand that it is rare that the Management company is representing the Tenant is a lease transaction. GWM for example specifically states on its leases that the Tenant is not being represented by GWM.
It is easy to understand the confusion that a prospect may have: they call the agent/manager to view the property; the manager shows them, and takes their application; if approve the manager works with them on lease terms and renting the home.
Throughout the process, it is normal for a trust and friendship to form, but the manager has to be clear to the Tenant that they represent the Landlord in the transaction. Sometimes only in the leasing of the property, other times (like with GWM) in the management as well.
This ruling means that property managers will need to be more explicit to their prospects and tenants if they want to avoid potential legal issues.
Get Professional Property Management Here
For professional property management contact GoldenWest Management today by calling us at (858) 779-0577 or click here to connect with us online.