Key Takeaways
- Dual agency occurs when one firm represents both buyer and seller in the same transaction
- Wisconsin allows dual agency with written informed consent from both parties
- In dual agency, the firm cannot disclose confidential information from either party to the other
- Dual agency limits the advice and advocacy the licensee can provide to either party
- Designated agency allows different agents within the same firm to represent different parties
Dual Agency and Multiple Representation
Wisconsin allows dual agency under specific circumstances with proper disclosure and informed consent.
What is Dual Agency?
Dual agency occurs when:
- A single firm represents both the buyer and seller in the same transaction
- A single agent works for both parties
How Dual Agency Arises
| Situation | Description |
|---|---|
| In-house sale | Buyer agent and listing agent work for same firm |
| Single agent | One agent represents both buyer and seller |
| Company-wide | Firm has agency relationship with both parties |
Requirements for Dual Agency
Wisconsin allows dual agency IF:
1. Written Disclosure
| Requirement | Description |
|---|---|
| Form | Written disclosure explaining dual agency |
| Content | Limitations and implications of dual agency |
| Timing | Before dual agency relationship begins |
2. Informed Consent
| Requirement | Description |
|---|---|
| Both parties | Buyer AND seller must consent |
| In writing | Consent must be documented |
| Voluntary | Cannot be coerced |
Limitations of Dual Agency
In a dual agency relationship, the licensee CANNOT:
| Prohibited | Reason |
|---|---|
| Disclose confidential information | Cannot share one party's information with the other |
| Advocate for either party | Must remain neutral |
| Advise on price/terms | Cannot recommend what to offer or accept |
| Recommend concessions | Cannot suggest one party concede to the other |
Key Point: Dual agency significantly limits what an agent can do for either party. Full disclosure of these limitations is essential.
Designated Agency
Designated agency (also called appointed agency) is an alternative to dual agency:
How It Works
| Feature | Description |
|---|---|
| Definition | Broker designates specific agents to represent specific parties |
| Benefit | Each party gets dedicated representation |
| Limitation | Only works within firms with multiple agents |
Designated Agency Structure
| Role | Responsibility |
|---|---|
| Supervising broker | Remains dual agent, manages transaction |
| Designated buyer agent | Represents only the buyer |
| Designated seller agent | Represents only the seller |
Advantages Over Dual Agency
| Designated Agency | Dual Agency |
|---|---|
| Each party has advocate | Neutral, no advocacy |
| Confidentiality preserved | Limited confidentiality |
| Full advice available | Limited advice |
Disclosure of Personal Interest
A licensee must disclose in writing when:
| Situation | Disclosure Required |
|---|---|
| Acting for self | Buying or selling own property |
| Acting for family | Immediate family transactions |
| Personal interest | Any entity with ownership interest |
Important: This disclosure must be made to ALL parties in the transaction.
Compensation Disclosure
Multiple Compensation
If a licensee receives compensation from more than one party:
| Requirement | Description |
|---|---|
| Written disclosure | Must disclose to all parties |
| Timing | Before compensation is received |
| Content | Source and amount of compensation |
What is required for dual agency to be permitted in Wisconsin?
In a Wisconsin dual agency relationship, what can the licensee NOT do?
What is designated agency in Wisconsin?