Many states have real estate agency disclosure laws that require consumers or home sellers to sign an agreement that specifically describes how an agent is going to be representing them throughout the real estate sale. This agreement often includes a clause requiring the consumer or home seller to disclose any possible conflicts of interest concerning the real estate sale. While this can protect the homeowner or property owner from being sold or damaged by a real estate agency or salesperson, it does little for the consumer who is simply shopping around for a new home.

But Is it Better Than No Commission For the Agent?

As a result, many real estate agency relationships are strained between the agent and the broker, and this often leads to personal conflicts that damage the standing of both parties. If the broker finds out that the agency’s representative has put in a dishonest bid, they may decide to retaliate and try to get the client removed from the contract or try to force the seller to sell to another real estate agency. Even though these types of conflicts are rarely successful, they do occur more than one might think. When this happens, the bad press that usually follows these occurrences can taint the agency’s image, causing even more harm to the brokers than the negative real estate market. The result is that the brokers who are forced out of their real estate agency relationships find that they are unable to get the commissions they thought they would receive if they were working with a more stable brokerage.

While there is nothing wrong with a broker representing more than one real estate agency, there are ways that a buyer or seller can make sure that the brokerage chosen is a good fit. Buyers and sellers who are interested in working with a brokerage that is led by two independent brokers might be able to save money by choosing such a brokerage. With some of the newer online real estate brokerages, a buyer or seller may be able to fill out a simple form listing the brokerage of their choice, indicating the type of commission that they would like to receive. Because these companies typically have less conflict-of-interest issues than the larger traditional brokerage firms, the buyers and sellers of real estate have more options available to them today than ever before.