Own Luxury Homes®
How to Choose Real Estate Representation: 8 Questions
8 questions before signing: (1) single agent or transaction broker? (2) brokerage represents both sides? (3) compensation and who pays? (4) do you practice dual agency? (how many last year?) (5) dual agency consent buried in buyer agreement? (6) [seller] how are brokerage buyer offers handled? (7) written brokerage dual agency policy? (8) what does full representation mean specifically? Red flag: pre-authorization of dual agency in buyer agreement. Own Luxury Homes® 12-Point Agent Integrity Audit™ — all 8 answered in writing at first meeting.
Own Luxury Homes® is a licensed real estate brokerage, not a law firm. This guide is provided for educational purposes and does not constitute legal advice. Agency law varies by state and changes frequently. Nothing here creates an attorney–client relationship. Before making decisions about representation, understand the specific laws in your state. If you have questions about how your agent is representing you, ask them in writing.
How to Choose Your Real Estate Representation: The 8 Questions Every Buyer and Seller Should Ask Before Signing
The most important decisions you make in a real estate transaction happen before you see the first house or list the first room. Who represents you, in what capacity, with what obligations, and with what financial incentives — these determine whether you have an advocate or a transaction facilitator at your side. This guide gives you eight specific questions that reveal the reality of your representation before you're committed.
The 8 Questions to Ask Before Signing Anything
Question 1: "Are you a single agent representing only me, or are you a transaction broker?"
This is the foundational question. A single agent owes you full fiduciary duties. A transaction broker owes you honest dealing and disclosure — not loyalty or advocacy. In Florida and Colorado, the answer may surprise you: unless you've affirmatively elected single agency, the answer is transaction broker. Get it in writing before the relationship proceeds.
Question 2: "Does your brokerage represent both buyers and sellers?"
If yes, designated agency is possible when a buyer from that brokerage wants to purchase a home listed by the same brokerage. Ask specifically: "If I want to buy a home listed by your brokerage, what happens to my representation?" The answer reveals whether you'll face a designated agency situation and whether a different agent from a separate firm would better protect you.
Question 3: "What is your compensation and who pays it?"
Since August 2024, this must be in your written buyer agreement. But ask it verbally first to see how comfortably your agent explains it. Specifically ask: "If the seller doesn't offer to cover your fee, how does that work?" An agent who can't explain this clearly hasn't thought through the post-settlement landscape.
Question 4: "Do you practice dual agency? Have you in the past year?"
Direct. Ask the direct question. An agent who practices dual agency will typically disclose it when asked directly. Ask for recent specifics: "In the past 12 months, how many transactions have you closed as a dual agent?" Any number above zero tells you it's a practice they accept, not just a theoretical possibility.
Question 5: "Is dual agency consent buried anywhere in your standard buyer agreement?"
Many post-settlement buyer agreements contain language like: "In the event of an in-house transaction, buyer consents to dual agency or designated agency." This one sentence, signed without discussion, pre-authorizes a dual agency arrangement for any property listed by that brokerage. Ask your agent to walk through the consent language before you sign. If it contains dual agency pre-authorization, ask them to remove it or strike it.
Question 6 (For Sellers): "Will you bring buyers from your own brokerage, and if so, how?"
A listing agent who also represents buyers from their own brokerage is creating designated agency or dual agency situations on your listing. Ask: "If a buyer represented by your brokerage makes an offer on my home, will you stay as my listing agent? Who represents the buyer? Is that buyer's agent truly independent from you?" The answers determine your actual seller protection.
Question 7: "Can I see your brokerage's policy on dual agency in writing?"
A brokerage that prohibits dual agency will have a written policy. A brokerage that allows it may not have a written policy at all — meaning each transaction is handled case-by-case with disclosure at the agent's discretion. Ask for the document. The willingness to produce it tells you something; the content tells you more.
Question 8: "What does 'full representation' mean to you, specifically?"
Listen for: loyalty, confidentiality of your negotiating position, active negotiation on your behalf, advice to walk away if the deal doesn't serve you. If the agent talks about "facilitating," "helping both parties," or "being neutral" — they are describing transaction brokerage, not full representation. The language your agent uses reveals the representation model they're operating in.
Interpreting the Answers: The Red Flag Scorecard
| Answer You Receive | What It Reveals | Action |
|---|---|---|
| "I practice dual agency when all parties consent" | Agent sees dual agency as acceptable; uses consent as justification rather than seeing the structural problem | Decide if you're comfortable with a dual-agency-tolerant agent; many buyers are not |
| "I'm a transaction broker by default in Florida/Colorado" | Honest; now you know; you can elect single agency | Ask them to establish single agency before proceeding |
| "I work for both buyers and sellers, but I keep everything confidential" | Factually impossible in a dual agency or designated agency arrangement; the agent doesn't understand the conflict or is minimizing it | Clarify the specific relationship in writing; don't rely on verbal assurances |
| "I've never done dual agency" | Strong signal if true; verifiable through their transaction history | Ask them to confirm this in your buyer agreement: "agent will not act as dual agent on any property during the term of this agreement" |
| "We don't allow dual agency at our brokerage" | Best answer; aligns with your interests; ask for the written policy | Ask to see the written brokerage policy; verify it covers designated agency as well |
| Cannot clearly explain their agency relationship | Agent doesn't understand agency law well enough to protect you | Find an agent who can answer every one of these questions clearly and in writing |
The Written Agreement Checklist: What to Look For Before Signing
| Check For | What Good Language Looks Like | Red Flag Language |
|---|---|---|
| Agency type | "Single agency representation of buyer only" | "Facilitating the transaction" or "limited representation" |
| Dual agency consent | No dual agency consent language at all | "In the event of an in-house transaction, buyer consents to dual agency or designated agency" |
| Compensation | "Agent will receive X% / $X; commissions are negotiable" | Open-ended compensation without a cap or ceiling |
| Services | Specific list of services: CMA, offer preparation, negotiation, inspection coordination, etc. | Vague "assist buyer" language |
| Termination | "Either party may terminate with X days written notice" | No termination right; buyer locked in for the full term regardless of agent performance |
“The 12-Point Agent Integrity Audit™ exists because most buyers and sellers never ask these questions. They trust the agent who seemed nicest at the open house. The audit gives our clients a framework — and holds every agent we work with to account against it. An agent who cannot answer Question 4 clearly — "Do you practice dual agency?" — has told you everything you need to know about their practice. Ambiguity protects the agent. Clarity protects you. We require clarity.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What questions should I ask a real estate agent before hiring them?
Eight specific questions: (1) Are you my single agent or a transaction broker? (2) Does your brokerage represent both buyers and sellers? (3) What is your compensation and who pays it? (4) Do you practice dual agency? (5) Does your buyer agreement contain dual agency consent language? (6) [Sellers] How do you handle offers from your brokerage's buyers? (7) Can I see your brokerage's dual agency policy in writing? (8) What does full representation mean to you specifically? Get every answer in writing before signing.
What should a buyer representation agreement include?
Single agency designation (not transaction brokerage); no dual agency pre-authorization language; specific compensation with a cap; specific list of services; termination right for either party with reasonable notice. Red flag: pre-authorization of dual agency or designated agency "if necessary" — this one clause eliminates your right to independent representation for any listing at that brokerage.
How do I know if my real estate agent is truly working for me?
Ask Question 4 directly: "Do you practice dual agency, and have you in the last year?" Then ask Question 1: "Am I your single agency client with full fiduciary duties?" If the agent hedges on either answer, or if your agreement contains dual agency consent language, you may not have the independent representation you assumed. A truly independent advocate will say "no dual agency, ever" and will put it in writing.
Own Luxury Homes® — every client receives answers to all 8 questions at the first meeting. 12-Point Agent Integrity Audit™. Talk to a specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)