It is a simple honest mistake people make because they don't really understand how the system works. They see a house they like so they call the seller on the sign and see if they can get into it to see it. The seller gladly shows it to them and offers to write up a purchase contract for them. That's dual agency. It is when a single agent represents both the buyer and the seller. It is not illegal in California, as long as it is disclosed.That is often done by burying it in a bunch of fine print paper work they have you sign. Most of the time It has serious ethical problems.
How can a agent represent you and the seller at the same time? It is like in a court of law where the prosecuting attorney is also the defense attorney at the same time, you would never do that. To illustrate it another way it is like a professional athelete having a agent negotiating his contract when the same agent is working and negotiating for the team owner at the same time. So who are they trying to get the best deal for you or the seller? Research it on the internet you will see what I mean. Don't make this common mistake. There are a few instances where it could make sense. A property transaction within a family as an example. Stay away from situations where you are being drawn into a dual agency arrangement, in fact I would say that is a major red flag that you need to find another agent. Unscrupulous agents can be really pursuasive with them because they get double commission, the buyers and the sellers. There are some really sad stories of people who have been taken in such situations. Taking advantage of peoples innocence, it is not as rare as you would hope.
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