Orlando Real Estate, Orlando Buyers Agent, Orlando Homes, Orlando Buyers Broker: HUD's NEW SHORT SALE rule eliminates Double Agents

HUD's NEW SHORT SALE rule eliminates Double Agents

 HUD has new Short Sale rules effective Oct 1, 2013...


HUD's new short sale rulesThe new HUD rule will prohibit brokers and agents from representing both buyers and sellers in FHA SHORT SALES.  To ensure that short sale transactions are "arm's length" brokers and their agents may represent only the buyer or the seller but not both parties. Even HUD knows that "dual agency" is not a good thing...


Under this new policy, if a Real Estate office chooses to list an FHA short sale, none of the other agents under that broker can bring a buyer to the property. It is really great that even HUD understands the conflict of interest that results in having a "double agent" on the transaction.


This is good news for home buyers!  Home buyers making Short Sales offers, are  at a disadvantage when the listing agent has their own buyer, and can make double the commission by claiming to represent both parties and keeping the deal "in house".  I think this HUD rule is overdue, will level the playing field and I am glad to see it.


Also, HUD's cost booklet for Home Loans, (on page 6) says it is the buyers responsibility to search for an agent that will represent your interests in the real estate transaction. HUD goes on to say "If you want someone to represent only your interests, consider hiring an "Exclusive Buyers Agent" who will be working for you...


Buyers Broker of Florida is an "Exclusive Buyer Agency" office the only represents home buyers, never sellers.  Call us to experience the difference 407-539-1053.


Copyright @ Buyers Broker of Florida "HUD's NEW SHORT SALE rules eliminates Double Agents"


Orlando Buyers Broker offers free Home Buyer Consultation 

Orlando Short Sales priced fake fully low

Orlando Real Estate News


Subscribe to my blog

Representing ONLY the best interest of the Home Buyer...never the seller.

 Eve Alexander Orlando Buyers Agent


Comment balloon 88 commentsMike & Eve Alexander • September 24 2013 06:09AM


Good morning, Eve.... good rule....pick a side and represent it.... we are listing agents and when we receive a call from a buyer, our agency disclosure says that we represent the seller.... the buyer can select a buyers' agent to represent them or go without representation.... you cannot believe how many go without representation in our new home communities.... their choice!!

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) about 4 years ago

I'd be willing to bet money that not one buyer in 50,000 understands the difference.  This is one area where the NAR has totally failed the consumer.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) about 4 years ago
I hadn't heard this new rule until now, I can hear a bunch of hooray's and oh man's in the background. I wonder if the REO asset managers will follow suite!?!
Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) about 4 years ago

Barbara:  That is because most home buyers do not realize what effect representation has on their wallet.  You have a good policy...most offices keep "agency " a secret.

Lenn: I agree. 

Evelyn:  I think the almighty dollar will bring more "oh mans"

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

If I am really working for my client, I know too much about him to work both sides without a conflict of interest.  If FHA is doing it on short sales, why not across the board?

Posted by Dwight Puntigan, Dwight Puntigan (DRP Realty, LLC) about 4 years ago

While I think this is the right thing I also believe buyers really don't understand it all, they want the listing agent as it's perceived they know more about a property and are more likely to get the sale through.

Posted by Corinne Guest, Managing Broker, The Choice of Professionals (Barrington Realty Company) about 4 years ago

BEST OF LUCK finding a Realtor who wants to work a 50k short sale. HUD is making a huge mistake here. I believe a buyer is better off going through the listing agent "in this case." It doesn't matter what the buyers agent does to negotiate, the bank is the bank. How many brokerages will opt out of taking short sale listings now?

What next? HUD saying we can't work both sides in regular transactions? Not a good idea. Very bad. As it is, Listing Agents for the huge foreclosure brokerages never answer their damn phone. As if this is going to help "HUD"

Posted by Greg Nino, Houston, Texas (RE/MAX Compass, formerly RE/MAX WHP) about 4 years ago

Agency here in Georgia can not be kept a secret.  Disclose, disclose, disclose!  But I wonder if most consumers will understand the new rule.

Posted by Susan Jackson (America's Network Realty Group, Inc) about 4 years ago

Dumbest move the government ever made....this eliminates hundreds of agents in one market from writing an offer...this does not mean just the same agent... it DOES mean any agent in that brokerage.....we have been asked to add our names to the NO NO NO list with NAR...everyone should ....


Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce - Short Sale (Keller Williams 414-525-0563) about 4 years ago

Dwight:  That would be ideal, but I will not hold my breath.

Corrinne:  Unfortunately you are correct.

Greg:  I don't know if this is really going to help HUD, but it will help homebuyers who are making short sale offers not to get shut out by the listing office's desire for an in house transaction for double commission.

Susan:  Every state has some kind of disclosures, but each agent can spin it so that the consumer is confused, so you are right:  the consumers will probably will not understand the new rule.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

I just spoke to another Realtor about this. Her first response was "who the heck wants to do short sales then". I've sent a message to my Compliance Officer for clear instructions ( we don't have Dual Agency in Florida, but we do have something similar )


can't wait for the reply



Posted by Michael Rasch, Michael Rasch 305-741-1819 (Florida Home Sales and Investments ) about 4 years ago

There has been a lot of talk and opinions about working both sides of the transaction over the years. The Honest truth is it has a lot to do with the Agent who is involved. If you are a nuturing type of person who becomes totally invested in your client then it will most likely not work for you. If on the other hand you have the ability to allow your emotions to take a back seat and focus on the task at hand which is to look at what the property offers in terms of the Sellers and the Buyers Goal to see if they fit you may be all right.

I have represented both parties for years and am able to do just that. The property is what the property is.

In fact I sometimes believe that often times the agent who only works one side of the transaction and becomes emotionally involved can lose track of there obligations to the transaction and may contribute to there Clients unhappiness over the purchase or sale after the closing and the reality of there actions set in.

Much like two children feel after encouraging each other to jump when they hit the ground.

Posted by Herb Hamilton, Real Estate Broker ,CDPE, Downtown Portland (RE/MAX Preferred Inc. Realtors) about 4 years ago

Good information....thanks very much for sharing!  

Posted by Greg Steffens (Mountain Country Realty) about 4 years ago

I agree with Sally and david #9. What are the bog agencies going to to send the other side to another agency. I can just see that happening. The government is once again trying to control our business and it will have unintended consequences. Just wait!

Posted by Helen and Larry Prier- Re-Max Gateway - Residential Real Estate, Anacortes & surrounding Skagit & Island Counties (RE-MAX Gateway- Residential Real Estate Sales) about 4 years ago

States define dual agency differently and in Virginia they way this is stated it also knocks out designated agency.  Would it not have been better to set a minium number of days on the market instead of worrying about dual agency? It's going to open a can or worms to define.  Know agents already who have "buddies" in other brokerages who represent a family member on a short sale purchase and who are closing deals this way with no red flags raised.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) about 4 years ago

Just another example of the government issuing a dictum in a realm where they know nothing.  In my opinion, an excellent broker can represent all parties fairly and equally.  A bad broker can be a poor representative of one party, two parties or a dozen.

Let good brokers keep doing good work!  SS/REO/etc are hard enough to get through without extra layers of bureaucracy. 

Maybe the governments (our) time and money would be better spent streamlining their processes to make them more efficient and timely.  If the REALLY want to help the consumer, how about better updates on the loan approval process and quicker underwriting returns.

Seems everywhere we turn the feds are telling us how to do OUR business when THEIR house is in disarray!

Posted by Tosh Dickenson, Broker (Willamette Properties Group) about 4 years ago

This is a terrible policy and FYI, NAR is opposed to it. To restrict people in my own office, and remember that some franchises have 4 figure members, is a disservice to those we are trying to help. Disgusting.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) about 4 years ago

Dual agency can be done properly, especially if you have a team environment in your brokerage business.  It is rare when they come up but I will represent one side and my wife will represent the other.  And no pillow talk.

Posted by Jay & Michelle Lieberman, Creating Calm in the Buying and Selling Chaos (Keller Williams World Class) about 4 years ago

In other words, HUD wants people most knowledgeable about the home (listing agent) to be barred from showing/selling the home.  Makes total sense in Washington D.C. world.

Posted by Manny Rosa, New Construction - Union & Essex Counties, NJ (Rosa Agency) about 4 years ago

I personally think this is the best thing to happen to HUD buyers. There are so many listing agents who were not working toward the client's best interest, but were more concerned about their own pocket books.

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Eastvale Team Realty & Property Mgmt) about 4 years ago

The restriction against dual agency works in most areas but in areas where real estate agencies are few it doen't work well at all.  In Virginia this restriction, if prohibits Designated Agency-where one agent in the firm lists a property (represents the seller) and another agent in the same firm sells the property (represents the buyer) is going to cause problems.  The principle broker "owns" the listing for the firm.  In dual agency the broker assigns an agent to represent the seller (usually the listing agent) and one to represent the buyer (the buyer's agent).  These agents have by law separate and independent obligations to their clients, respectively the seller and the buyer. 

These obligations make these transaction full arms length.  There is no collusion between the agents or their clients.  Each side gets full representation with the interest of the the repective agent's client paramount.

Having worked many of these transactions over several years with many short sale and REO transactions in the lot, I have never had an ocasion where the interests of either client was compromised. 

As a company even though dual agency (one agent representing both sides) is allowed in Virginia we don't use it. We have found that when a potential dual agency situation arises we either refer one party under designated agency or service one party as a customer (unrepresented) if they desire. 

A rule restricting a brokerage firm from using designated agency in instances where the buyer and seller are represented by different agents in the same firm is too restrictive and unnecessary.

Posted by Keith Canty, Experience, integrity & passion working for you! (Carrington Real Estate Services (US), LLC) about 4 years ago

Better yet, HUD should go back and review those double dip transactions ..... there are plenty of FRAUD!!!

Posted by Ed Tseng about 4 years ago

Rules and or Rule changes never benefit all interested parties. 

Posted by Ron Aguilar, Mortgage & Real Estate Advisor since 1995 (Continental Mortgage) about 4 years ago

Sally and David:  the dumbest move would be for HUD to allow NAR to dictate.

Michael:  While Florida has Transaction Brokers (no fiduciary) and not dual agents, they also claim to represent both parties which would fall under the new HUD guidelines.

Herb:  Emotional agents have no place in real estate regardless of who they are or are not representing.

Greg: You are welcome.

Helen and Larry: What I see happening is that the big brokerages will just figure out another way to keep the lions share.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Sadly this is coming as the Short Sale market is winding down.  Day late and a dollar short.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) about 4 years ago

Once again, the government does something without clearly thinking about the consequences. If they're so worried about dual representation, I can see not letting the listing agent bring the buyer - but barring everyone in the brokerage is complete insanity. 

Everything they've done, from the actions that led to the crash to all the "fixes" they've tried since then show that no one in government knows much about real estate - or about finances. 

Posted by Marte Cliff, your real estate writer (Marte Cliff Copywriting) about 4 years ago

I wasn't aware of this.  Thanks for sharing this latest information.

Posted by Terry McCarley, REALTOR, SRES, CDPE - Cape Coral, FL (REMAX Realty Team - Cape Coral FL) about 4 years ago

So, with the brokerage I work for has 900 agents. One of our agents is the expert in HUD - that is his niche. I've done a few deals with him for clients. I guess now we won't be able to do this anymore.  It will be almost impossible to NOT have at least one of our agents with clients who want to purchase a home listed by our HUD agent.

They've gone and shot themselves in the foot with this one.

Posted by Emmary Simpson, Serving Tucson AZ (Realty ONE Group Mountain Desert) about 4 years ago

Let's be realistic here. In a short sale, the seller is netting ZERO in the transaction, so they could care less who's representing whom. The have NOTHING to gain (or lose) in the sale of that home. All the seller wants is to get rid of that home. Agents (dual, or otherwise) are doing the bank a favor by facilitating the transaction. Remember, the seller, NOT the bank, is our client

Any agent who has done short sales understands the sometime thankless challenges we face in these transactions. Restricting the pool of agents eligble to handle these sales only exacerbates this shadow inventory of homes that continues to drag down the market in many areas.

As pointed out in earlier posts, most states have strict rules regarding "dual agency" in the sale of a home. While some of the zealots look for any opportunity to jump on this bandwagon, short sales should not be one of them.

Just my 2 cents....

Posted by Phil Amodeo ABR,CRS,e-PRO,SFR, Carmel, Fishers, Geist, Indianapolis North (C21 Scheetz) about 4 years ago

Wow.  What a mistake.  This means that many buyers will have to change agents to be able to procure a short sale if the listing is in the same offices.  Another stupid ruling with unintended consequences.  Only person it is hurting is the buyer.

Posted by Marnie Matarese, Showing you the best of Sarasota! (DWELL REAL ESTATE) about 4 years ago

Cindy:  Even with min number of days, the list broker can still hold out for an "in house" deal.

Tosh: "Fair" is no longer in the code of ethics but I agree that there are good and bad brokers.

Joe:  True, this is not favorable to mega brokerages which is why NAR opposes it...NAR always protects the big boys.

Jay and Michelle:  Really? No pillow talk? I would fail.

Manny:  In Florida, the short sale state, most SS agents don't even look at the property.

Sarah and Lester:  Yes, money does talk.

Keith:  Thank you for your comment.

Ed:  For sure...

Ron:  Just like dual agency.

Gene:  I can tell you have done some short sales

Marte:  Thank you for your point of view

Terry:  You are welcome

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

I hadn't heard. Thanks for the info but I do agree it's a bit late.

Posted by Jill Sackler, LI South Shore Real Estate - Broker Associate (Broker Associate, Charles Rutenberg Realty Inc. "Said and Done!") about 4 years ago

Short sales require a lot of communications. We've done some where we represented both sides and those typically went much smoother as the buyer always knew what was going on. It's one of those deals where instead of punishing bad agents we all get punished. Silly stuff as usual.

Posted by The Derrick Team - Indy Metro Realtors, Your Pet Friendly Realtors (Carpenter Realtors) about 4 years ago

Thanks for posting Eve.  Interesting news and hopefully, a step in the right direction for getting rid of dual agency altogether.  The is no "representation" of either buyer or seller when they agree to dual agency, in my state it's called "Disclosed Limited Agent" -- the dutes of the real estate agent are LIMITED!   DUH!!

@ Marte - the law of real estate agency is that it's the BROKERAGE who has the listing and every "agent" in that brokerage represents the sellers . . . because they are agents in that brokerage.  The lawyers in a law firm ALL represent the same client, even though the case/client might be assigned to a specific lawyer.  One of the FIRST things a law firm does when you call to ask questions and/or seek representation is to perform a "conflicts check."  If the law firm represented ABCXYZ Company, Inc. 3 years ago, even in a totally unrelated matter, and you have a beef with ABCXYZ Company, Inc. -- they will tell you that they can't represented you.  So it's ALL agents in the brokerage who represent the seller on the listing, similar to all lawyers in the law firm who represent the client.  When you begin to understand the law of real estate agency, this does make sense.

I agree with Gene -- too little, too late.

And for all the boo-hooers, don't worry.  The listing agent will still be able to parlay the buyer call into a client by telling them about all the other homes they have for sale (non-short sale).  HA HA HA

Posted by Carla Muss-Jacobs, Principal Broker (503) 810-7192, Buyer Focused ~ Buyer Results (BuyersAgentPortland.com | Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time) about 4 years ago

Whats going to happen to those agenies that make a living on HUD properties??? Keeping them all to be done in house.(double sided)..Many times, we cant get an offer in on them because we are told "it's under contract"??

Posted by Robert Hicks (United Country River City Realty) about 4 years ago

Well I'm not going to agree here. There are plenty of times that dual agency can work. Besides I felt that the HUD ruling seemed a little less than clear. What if both sides are in the same office? Are they even going to investigate it that far?

Posted by Lyn Sims, Schaumburg IL Area Real Estate (RE/MAX Suburban) about 4 years ago

Carla in Virginia not all agents work for the seller.   That went away with buyer agency and we also have designated agency where the listing agent is working for the seller and the BA is working for the buyer.  The only common element is the managing broker.  In large companies you could work for years under the same managing broker and never meet the other agent who works for the same company.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) about 4 years ago

I have never been a big proponent of dual agency but there are times when it's necessary. Not only that, but there's a big difference between dual representation and dual agency that HUD is not differentiating. For example, Lyon Real Estate is the largest independently owned real estate company in Sacramento. To say that no Lyon agent is allowed to sell an FHA short sale listed by another Lyon agent is insane. We have almost 1000 agents in the area and 17 offices. We don't even know each other.

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) about 4 years ago

Rather dumb rule. Our office handles about 1/3rd of all the sales in our Board and we are sort of an "All Star Team" in many ways (Top Agents from other companies have joined). So, if the house is Listed with us, they loose many of the best Agents with the most leads for getting Buyers... just gonna hafta do a lot of Referrals.

I've done both sides before and so far have had no issues. Been VERY careful when doing so - extra trouble for the extra money.

Posted by Travis "the SOLD man" Parker; Associate Broker, email: Travis@theSOLDman.me / cell: 334-494-7846 (Team Linda Simmons, Enterprise, AL 36330) about 4 years ago

There are many who chastise agencies or agents who work both sides of a transaction alleging that besides not working toward their clients best interest, they are more concerned about their own financial interests.

So, if that is a fact, why aren't those agencies and agents being reported to the proper authorities by these commentators? If you know someone who is violating the law, report them. However, I find it offensive that because I might work a transaction on both sides, I might be perceived as a crook. How ridiculous is that?

Let's be clear on the objective of any transaction, it's closing, isn't it? Why would anybody want to deny the seller from closing whether the buyer comes from the same agency or agent as long as the rules of dual agency is disclosed to both parties?

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) about 4 years ago

The problem is TOO MANY agents have no clue how a short sale works and when they represent a buyer they hurt the sale more than help. I find myself doing all the work and cleaning up their messes to get the sale to close. It is twice the work for half the pay. 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) about 4 years ago

So many underhanded shennanigans have occurred with these short sales.  Glad they are cracking down.

Posted by Rob Arnold, Metro Orlando Full Service - Investor Friendly & F (Sand Dollar Realty Group, Inc.) about 4 years ago

This would definately protect sellers from agents hiding the listing(pocket listing) until they produced the buyer.

Posted by Mike Frazier, Northwest Tennessee Realtor (Carousel Realty of Dyer County) about 4 years ago

Emmary:  the HUD agent will have to adapt just like all agents.

Phil:  I agree that the seller does not care who sells the property I disagree that dual agency has strict control...most is diluted.

Marnie:  This IS in the best interest of the home buyer who will not longer be losing out on short sale offers because of agents/offices accepting only in house offers.

Jill:  Yes hopefully we are at the tail end of short sales

Derrick team:  In house lisitng are good for the listing agent, not good for the outside agents.

Carla:  How true...if dual agency were viable, every courtroom would have only one attorney.

Robert:  What will happen is that the HUD agents will no longer keep listing for themselves.

Lynn:  If I had to guess there will be an "arms length" disclosure for the buyers agent to sign that will show it is different than the listing office.

Cindy: I understand

Elizabeth:  I see DA as a choice, not a necessity...but yes, the rule needs more clarification.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Seems like a rule that will make it harder to sell short sales. 

Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) about 4 years ago

Actually seems to be a step in the right direction.

I've witnessed foreclosure sales where the bank is being ripped off by the listing agent trying to double end the transaction. It doesn't happen a lot in my market but it sure does happen.

I've never quite understood why banks didn't put these restrictions on before.

Thanks for the interesting post Eve!

Posted by Jon Boyd, Ann Arbor Real Estate Buyers Agent (Home Buyer's Agent of Ann Arbor) about 4 years ago

Bad idea! Short sale is one case where seller and buyer interests are actually aligned, as both are seeking lender's approval and really nothing more than that! How does involving another agent in any way limit possible collusion between buyers and sellers? In fact, having a separate broker probably will make it easier to mask such collusion as HUD is trying to prevent.

Posted by Maarten (Marty) Reilingh (Maarten Reilingh, Licensed Real Estate Broker) about 4 years ago

This policy assumes the buyer's agent would be more competent/honest than the listing agent. Not a safe bet...

Posted by Doug Rogers, Your Alexandria Louisiana Agent (Bayou Properties) about 4 years ago

It's good to see that the issue of dual agency is being taken more seriously.  As more and more government and brokerage entities prohibit dual-agency, it'll disappear.

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) about 4 years ago

I'm not so sure the buyer and seller interests are aligned as suggested above.  They both want the lender's approval, that's true, but aside from that their interests are different.   I've seen short sale sellers where they don't care if it gets approved or not.  The buyer needs advice that is in their best interests - regardless of whether it's the sellers best interest or not.

Posted by Christine Smith, Exclusive Buyer Agent & Attorney, Canton, MA (Buyers Brokers Only LLC - www.BuyersBrokersOnly.com) about 4 years ago

Wow I wasn't aware of this change.  Reading the Inman article linked in your post, this ruling does conflict with dual agency which is allowed in New Jersey.  At one time I worked for a large brokerage and that would mean 100's of agents would not be allowed to represent the buyer if we listed a FHA short sale! Now I work in a smaller office but we do close a large percentage of our own listings - they may not all be short sales but still!

Posted by Gina Chirico, Real Estate Agent - Essex County, New Jersey (Lattimer Realty) about 4 years ago

I disagree with this rule. It is government meddling in private industry. It doesn't matter who brings a willing and able buyer to the closing, when the price offered is market value, and when it prevents a foreclosure. Often, Realtors® have their commissions reduced by the lender of the investor in a doule-rnded deal, anyway, and all lenders already have the Arm's Length Affidavit that has to accompany the contract. 

As long as the transaction is at arm's length, thegovernment has n obusiness interefering in the salem this way. it i an obstruction of commerce. Anyone who sees this differently should carefully read the US Constitution again, to understand that this is government trying to ruin our business by interfering with it. 

Posted by Lou Farris about 4 years ago

Travis:  Referring it out would work...

Kimo:  Dual agent have consumers with opposing interests...not possible to acheive best interests for either party...which is why it is unheard in any other profession except for real estate.

The reason that I would not file a complaint against a short sale agent that is turning down my clients better offer in order to keep it "in house" and get double the commission IS BECAUSE THEY ARE ALL DOING IT!!!  It would be a full time job just writing complaints.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Scott you are so right. Because of a few agents the buyer and seller will suffer. In our state it isn't dual agency for all office listings and their agents. That was the way it was 20 years ago.

Posted by Vicki Temple about 4 years ago

Hi Mike & Eve, even though Florida allows it we avoid double ending in most cases because we have had so many not work out well.

Posted by Bob Miller, The Ocala Dream Team (Keller Williams Cornerstone Realty) about 4 years ago

Scott:  I get it.

Mike:  Yes and that is what I think HUD wants.

Rob:  I am glad that you are glad.

Silva: Listing agents will need to market the property more.

Jon:  I agree that it is a step in the right direction

Maarten:  The same reason that SUB-AGENCY has disappeared...due to no accountability.  When Buyer Agency first appeared, no one liked the fact that listing agents all of a sudden had someone checking the facts.

Doug:  I do not think the policy assumes that a buyer agent will be more honest...I think HUD thinks any agent NOT in the same office will be a better bet.

Bryan:  I hope you are right...

Christine:  We agree

Gina:  So a small office is good for you!

Lou: There was a time when Great Western Bank refused any commission going to the buyers agent...because GW can dictate their own business policy...(just like HUD can). This is not HUD telling real estate agents what to do...it is HUD saying how they want their properties sold.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

I will 100% agree that some agent sit on listing to get both ends. I think that it going to far to say that no other agent in the office can show or sell that listing. In our office we promote our listing actively and a lot of the time the buyers  come from our office. If I have a buyer that wants to see this short sale and I know that I can represent them puts me in a bind. Do I give the customer to another agent in some other office to make the sale? or do i just refuse to show that house , and still lose my customer? So I feel they have it half right this time.

Posted by Chuck Mixon, Cutler Bay Specialist, GRI, CDPE, BPOR (The Keyes Company) about 4 years ago

I would disagree.  In Pennsylvania we practice designated agency where a broker can appoint different agent to represent two different parties and it's not dual agency.  In our market two brokerages represent over 65% of the market so if you rule one out completely you have eliminated a large pool of buyers as well. 

Posted by Marc McMaster, Putting my clients before myself (RE/MAX Centre Realty) about 4 years ago

Having a buyer represented by another agent in a short sale is always harder.  The buyer's agents often doesn't understand short sales and do not know how to explain it to his or her buyer.  Sooner than later the buyer is off looking at more properties with their agent while under contract with the seller.  If I have both sides of the short sale then I know if that buyer is getting nervous about the wait. 

I work as a transaction agent in Florida and I would hate to go back to dual or single agency. A good agent is a good agent and putting the words "buyer's agent" next to their name does not mean the buyer is going to get anything more.  

I think there are a few agents that do short sales who are doing some shady things that Fannie Mae and Freddie Mac will not tolerate.  Having FHA only allow single agency is another way to try and prevent fraud but those agents will work something out with another broker. It only hurts the good agents. 

I work with the largest broker in my area.  Now all the agents in my office can't bring their buyer to see my listing.  How does that help the buyer, the seller, the agents or FHA? 

Posted by Karen Mathers - REALTOR YOUR, When it Matters, Choose Mathers! 772-532-3221 (Keller Williams Vero Beach) about 4 years ago

Like Marc #58 from PA, in Illinois we practice designated agency and as long as there are two different agents on the buying and selling sides, that is not dual agency here and our disclosure requirements will confirm that.

Posted by Allyson Hoffman, Making Today's Dreams Tomorrow's Reality! (RE/MAX Villager (Chicago North and North Suburbs Real Estate)) about 4 years ago

Well, unfortunately for other agents and their clients and fortunately for a listing agent/broker there is an easy way to 'practically' double end by asking another agent represent your buyer/investor for a fee or a referral fee.....

Yet, this rule is a good start.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Los Angeles CA (Barcode Properties) about 4 years ago

Hi Mike and Eve,

I completely agree, and believe that this new rule will help to bring ethics back to these already difficult transactions! The past few years has brought out the worst in agents, due to the limited inventory. So many do not return phone calls regarding appointments for showings, and there were several times I suspected that the listing agent didn't even bother to present my buyer's offer. In many cases my instincts were correct and the property ended up selling for less than what my buyer offered, and the listing agent double ended the deal.

Thanks for the post and hope you're having a great week,


Posted by Momentum Realty, Orange County CA Real Estate Agent (North Orange County CA Real Estate Specialists) about 4 years ago

Wow Mike and Eve - I didn't know this fact but quite frankly we don't do many HUD's so it's not a big issue for our small company.  It might be for the larger firms in my area with over 5000 agents - not so easy to get around the dual agency situation.  We are not a designated agency state. 

Posted by Anna Banana Kruchten CRS,CRB, Arizona's Top Banana of Real Estate! (Phoenix Property Shoppe) about 4 years ago

I would agree only on the dual agent part.  Eliminating the Broker from representing two agents is not a good idea as it can severly limit the number of agents that can represent the buyer.  We are all independent agents and the Broker just keeps us under control.  In our market, that eliminates a lot of good agents from selling HUD homes.  Our agency is one of the top producers in a large market and that eliminates a lot of potential buyers from these homes.  Not good idea in all states.

Posted by Ric Mills, Integrity, Honesty, and Vast Real Estate Knowledge (Keller Williams Southern Az) about 4 years ago

I would have to disagree. I myself do short sales & find both the buyer, seller & the short sale bank can benefit from one agency closing the transaction. If it were agents from different companies  the commission would actually be more. In most circumstances they will negotiate the commission down 1% if it is in house. That would still be a good situation for everyone. Listing & selling these homes involves a lot of time, effort & advertising. Not to mention patience & paperwork. Tons of it!! I think this is a bad decision as an agent that is not experienced in short sales can create a lot of conflict for ready, willing & able buyers & sellers. This was a great blog post & stirred quite a bit of opinions with a lot of great points. 

Posted by Christine House, Century 21 Broadhurst & Associates (Century 21 Broadhurst & Associates) about 4 years ago

I suspect banks have wondered if dual agency or dual agency/brokerage have colluded with short sellers while selling to the troubled homeowners friends or family members, etc.  An agent representing both buyer and seller on a short-sale, may not have the "incentive" to present all offers to the bank, who is ultimately "taking it in the 'shorts'"  Here in Sacramento, there was news coverage, in the beginning years of this housing crisis, about an elected official, who actually managed to "keep" her home, by using such a tactic. 

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) about 4 years ago

Interesting how the ethical will remain ethical and well, let's just say a bad agent will remain a bad agent.

Posted by Anna Hatridge, Missouri Realtor with Goodson Realty (Goodson Realty) about 4 years ago

I think you point about these being HUD properties and it's HUD stating what they want to happen with the agents in that particular office is a point well missed.  They are the client, and they can set their rules.  What a fun topic!!  ;-)

Posted by Carla Muss-Jacobs, Principal Broker (503) 810-7192, Buyer Focused ~ Buyer Results (BuyersAgentPortland.com | Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time) about 4 years ago

Maybe I'm misundersating this but I thought we were talking about short sales and Carla you said that HUD is the client?  In a short sale HUD wouldn't be the client, the homeowner is still the client. 

Back to the original topic - I work in an office of only 6 licensed agents, but what about the two big agencies that have 350+ agents in the same office?  Practically this isn't going to work very well.

-Kasey Boles

Posted by Kasey & John Boles, Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties (Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com) about 4 years ago

Banks don't want to do short sales and government is not there to help. We have fewer short sales in my market area, so it's that big a deal, but if the market turns over in the future I expect FHA short sales will be avoided like the plague.

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) about 4 years ago

This is an issue many firms are not aware of as yet. And in many markets where majority of agents are affiliated with a few companies that represent a sizable portion of the market, it will prove to be a problem.

Posted by Nina Hollander, Your Charlotte/Waxhaw/Fort Mill Area Realtor (RE/MAX Executive | Charlotte, NC) about 4 years ago

Thanks for the information!

Posted by Drick Ward, "RealtorDrick" - Experienced Representation (NEPTUNE REALTY) about 4 years ago

Oh the big brokerages will come up with a fix.  It goes like this.  They separate off a portion of their office space with direct access to a hallway for instance.  This now becomes it's own office with a different name like Short Sale Specialists Inc or something.  Now the listings and the listing specialist resides here as his/her separate brokerage.  But they attend all company meetings and are only a separate brokerage in name only.  Technically these agents are still part of the main brokerage. 

All the paperwork for the sale will look like it's two different agencies.  Believe me - these guys will find a solution that fits the rules but not the spirit of the rule.

Posted by Patty Purdue Laforte (Realtypath LLC) about 4 years ago

Thank you for bringing this to my attention.

Posted by Thomas McCombs (Century 21 HomeStar) about 4 years ago

Ruiz/Miller Team:  Thank you for admitting it

Chuck:  The half right is in the right direction

Marc:  Designated agency is not much improvement over Dual.

Karen:  All buyers will now have an equal chance at the SS property

Allyson: Designated agency will also be nixed as it is 2 agents in the same office

Inna:  Thanks for your good attitude

Gina:  Thank you and I hope other read #62

Anna:  Yes, large brokerages will be unhappy

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Ric:  It is not favorable to large offices

Christine:  lots of comments and viewpoints...thank you for yours

Meryl:  Well said and true...

Anna: you are right, wish we could just pick out the good ones

Carla:  every entity can set their own rules

Kasey:  Well it should work better for you...

Pamela:  Probably will.

Nina:  It will either be a problem or not...depending upon attitude

Drick:  You're welcome

Patty:  So, so well said...and you are right...but they will need a different broker.

Thomas:  you are welcome

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

Mike & Eve, just wondering if you have a Big Box Real Estate Company one broker who has 200 offices....does that mean if the listing is with that broker no one can represent the seller from big box?? Just thinking out loud and providing another view. BTW I would have no problems with it either way. Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) about 4 years ago

Endre:  the way I read it, it forbids two agents from the same office. (or working for the same broker)  Sure it will be a problem for the big companies...however I have no doubt that they will figure out some creative way to still keep the business.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

There are so many wrong aspects to this ruling that it just amazes me that so many agree with it. Dual Agency varies state to state. What's worse is that we are talking about the distressed Seller in a Short Sale who is trying to avoid foreclosure.  This is an attempt for the Banks to wrap their arms around foreclosure perhaps because they see rising home prices and they'd be better off putting the brakes on Short Sales so they could later sell in a rising home selling price market.  Just another way in which to wreck havoc on a Short Sale, continuing 5 years after the Short Sale has been a major part of the Real Estate landscape. Here in Florida I can represent a Seller and a Buyer and have, on a Short Sale where both parties won; the Seller avoided foreclosure and the Buyer bought a great home.  This meant the Seller was able to sell a home to who they wanted to and the Buyer was able to buy the home they wanted.  If this would have occurred while this rule is in effect, my Seller could risk not being able to sell their home because a competitive brokerage representing a Buyer didn't want to buy their home when the Buyer I had or even another Agent in my office wanted to bring the Buyer they couldn't; how is that a good thing in a struggling Real Estate Market.

Real Estate Agents are supposed to follow a code of ethics and this ruling shouldn't be set in place due to those who are unethical. I value the way in which I do business so why should my Buyers and Seller suffer due to others. 

If this isn't overturned, this will not benefit the Real Estate market as it will bring on more foreclosures. A rising foreclosure inventory is not a good thing.

Have you seen the letter from NAR? I've inserted a link here where I address it in a post:

Nar Letter in a Post

Posted by Lynn Pineda, Coral Springs REALTOR- Promises Delivered (Keller Williams Realty) about 4 years ago

I agree with Karen #59- we have way too much fall out from buyers on short sales and by limiting this prevents marketing to other agents within your brokerage.  Even for big box brokerages it seems this would certainly be a problem.  

Considering many of these big box brokerages dominate sales in their areas this could actually lead to lower sales prices, longer time on market, and more problems with inexperienced and unetical agents that the big boxes won't tolerate.  

For agents this definately creates issues!  Imagine you have an exclusive buyer agency with a buyer you've been working with for a while and they decide they're interested in a short sale listed with you or your brokerage, now what, we suddenly have to tell the buyer I can't help you anymore you'll have to go down the street to XYZ brokerage if you want to buy this house?!?  This is insanity!  They may be someone you've built a long time relationship with and have selected you to be the best possible agent to represent their interests and yet, you can't work with them.  What a can of worms!  

Just because HUD creates a rule doesn't mean it's a good one!

Posted by Diane Allan about 4 years ago

I've never represented both sides in any short sale so I guess I'm lucky.  I've created a relationship with another agent so that when I know I have both buyer and seller, I simply call that agent and WE got to work. She's an ethical broker and I'm comfortable the job will be completed successfully!  

Posted by Jan Green, HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN (Value Added Service, 602-620-2699) about 4 years ago

Well that was a long time coming! So glad to hear of this change since I don't see how you can do both.

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) about 4 years ago

Lynn:  My experience with short sales has been that if the listing office has a buyer for it, my buyer client is just out of luck...regardless of how high my cash offer is and how poor the other offer is...I think HUD figured that out.  While you sound like you have the utmost ethics, many if not most in florida do not practice with high standards.

Jan:  Thank you for a good attitude and a way to figure out a solution

Barbara Jo:  Glad you are glad.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago

HUD implemented the no dual agency rule because of fraud. When Realtors(r) do fraudulent practices, it embarrasses all of us and diminishes our credibility in the marketplace. But, instead of holding Realtor(r) members to high standards, NAR is fighting for dual agency as the normal practice of agents. Why isn't NAR seeking to weed out members who are doing the wrong thing?

Instead, NAR continues to diminish our value by watering down agency and making dual agency normal and bad agency acceptable. In the long run, I think NAR is ruining the credibility of our industry by turning a blind eye to HUD's concerns about fraudulent practices. 

NAR spent our dues money to do so, also. http://www.realtor.org/articles/hud-removes-dual-agency-restrictions

Posted by rona about 4 years ago

Yestyerday 9/25/13 HUD changed their policy and has decided not to implement their new rule not allowing dual agency. 

Posted by Bill Panton, Central Oregon properties, Bend homes... (Duke Warner Realty) about 4 years ago

I was so excited about this, but HUD is a bunch of wusses who backed down from the higher ground to think about that part of the policy. So sad. 

Posted by Dana Hollish Hill, Associate Broker (Hollish Hill Group, Keller William Capital Properties) about 4 years ago

Rona:  Which is why the public does not respect real estate agents...

Bill:  Yes, unfortunately

Dana:  No surprise that NAR fought for the big boys...too bad HUD did not stand for what is right.

Posted by Mike & Eve Alexander, Exclusively Representing ONLY Orlando Home Buyers (Buyers Broker of Florida ) about 4 years ago


   I am not a fan of 'dual agency' and would employ my own buyer's agent in any real estate transaction I was considering entering into.  I see the opportunity for fraud that the HUD rule was supposed to address.  However, the draconian approach they took for short sales is not the answer.  It was, and should have been, retracted by HUD (http://activerain.com/blogsview/4203756/hud-will-not-implement-ban-on-dual-agency-in-short-sale-transactions and http://activerain.com/blogsview/4203993/is-hud-removal-of-dual-agency-provisions-a-good-thing-).  It needs to be reviewed properly, with a public comment period, before any part of it is implemented again and common sense needs to be a considered option.  Oh, I forgot.  This is a government bureaucracy...

   Now your readers will get a little understanding of why the HVCC was so heinous to the workings of the real estate business and not just appraisers.  SSMCs (Short Sale Management Companies) next?


Posted by John J. Woods (Aardvark Appraisals) about 4 years ago