What is Dual Agency (Hogging)?

Does Your Real Estate Agent Really Work For You?

If you're shopping for a home without a home to sell first, you might not have a relationship with a real estate agent. You may find yourself touring “open houses” on the weekend, checking the sales ads in the local paper or listings online. When you find a house that looks promising you jot down the number and call the listing agent, right? Nothing could be easier.
The agent is happy to show you the house. You agree to meet and walk through the property. As the agent shows you the property, she asks whether you are working with an agent. You reply that you don't have an agent.

Dual agency and conflict of interest

At this point, the agent may ask you if you are interested in the house and whether you want her to represent you in the transaction, too. Naturally, the real estate agent or broker is motivated by the commission to help you. If she represents the seller and the buyer then she doesn't have to share the commission with another agent or broker. It's a powerful and deceptive temptation to many agents. In the business we call this “Hogging” the transaction. Greed is the motivation.
This sets up a conflict of interest. When the agent wrote up the listing agreement with the seller, the agent agreed to represent the seller as their agent. The term "agency" is heavily freighted and carries many responsibilities toward the seller. The agent has a legal and ethical commitment to the seller to try to get the best possible price for their home among many other professionally mandated obligations. The primary rule of real estate is that the agent must be loyal to the principal—in this case, the seller. It is, after all the seller that is paying the agent’s commission once the house is sold.
In a dual agency transaction, when the agent attempts to act as the agent for both the seller and the buyer, he or she is creating a deal in which there are two principals. The first casualty of this effort is to compromise the loyalty he has to both. Whilst in Minnesota, this is not illegal (if it has been disclosed to seller and buyer) it’s certainly unethical. Like having a lawyer representing the same client for defense and prosecution.
When you’re working with an agent make sure that this person is only representing you and is on your side.