Dual Agency Problem

The Dual Agency Problem happens when one real estate agent or company works for both the buyer and the seller in the same deal. This can be tricky because the buyer and seller want opposite things—buyers usually want the lowest price, and sellers want the highest. In Jamaica, and around the world, this situation can create problems because the agent has to try to help both sides at the same time. That makes it hard to be completely fair or loyal to one person without upsetting the other.

To make sure everything stays honest, the agent has to tell both the buyer and the seller that they are working for both of them. Both sides must agree to this in writing, knowing that the agent might not be able to give them 100% attention because of the shared responsibilities. While this is allowed in many places, including Jamaica, it must be handled carefully. Rules from Jamaica’s Real Estate Board and global organizations like the National Association of REALTORS® are there to make sure agents stay fair and honest when they do this. It’s all about making sure everyone understands the risks while keeping trust and fairness in the deal.

References

• Real Estate Board Jamaica (n.d.) Licensing and Compliance Requirements. Kingston: Real Estate Board.
• National Association of REALTORS® (n.d.) Code of Ethics and Standards of Practice. Chicago: National Association of REALTORS®.
• Caribbean Policy Research Institute (2020) Ethics in Real Estate Transactions in the Caribbean. Kingston: CAPRI.
• Jamaica Observer (2023) ‘Transparency in Dual Agency: A Focus on Jamaican Practices’, Jamaica Observer, 15 August.
• Ministry of Housing, Urban Renewal, Environment and Climate Change (n.d.) Guidelines for Real Estate Practices in Jamaica. Kingston: Ministry of Housing.