It's the Rule - June 2006

by: President & CEO Terese (Terry) Penza, CAE, RCE, e-Pro

Obituaries

Double Dipping (formally known as the Listing Agent Collecting Both the Buying and Selling Side of a Commission), succumbed to public pressure and was pronounced dead by the media, new real estate business models, Brad Inman and attorneys. Diagnosed in late 1989 with the advent of agency, friends did everything they could to keep DD alive and well. Prior to 1989, though the Buyers believed they were being represented, it was only the seller that was legally represented. Lines between who-represented-who blurred so much that a law was needed to truly define the lines and clear up misunderstandings for the public. The public demanded to be informed of representation and this led to the timely death of DD.

DD lived in the hey-day of real estate from the mid 1800’s until today where agents could spend time driving people around, assuming everyone knew the rules of real estate and the only papers the agent needed was a listing agreement or a sales contract. Amazingly DD was able to stretch it’s longevity from 1989 until today. Mourners, especially those who have been in the real estate business prior to 1989, will dearly miss DD and some will even try to resurrect DD. However, legal pitfalls will most likely cause a financial drain on those trying to keep the living dead alive.

Although there are a great many who sorrowfully mourn the demise of DD, the public is elated. Now, open houses can truly be held to sell the property for the seller instead of the agent using the seller’s house to secure more buyers (most of the time without the buyer or the seller’s knowledge). Buyers can now browse through an open house without being pinned down to an agent that does not truly represent them (dual agency) or locked in to work with the listing agent. Even agents who understand the process are happy now that they can concentrate on their job (as they were hired by the seller to sell their house and not to worry about getting both sides of the commission.)

A wake will be held soon to give DD a proper send off of years and years of wonderful bliss.