Think. If you were unhappy enough to know a right, would you use the same lawyer as the other party? The answer to this question is „no.“ It would simply not be in your best interest to do so. How could the lawyer represent both? Sounds silly, doesn`t it? That`s because it is, and so is the duale agency. Dugal agencies can cause legal problems because real estate agents are bound by fiduciary duties. These obligations require total loyalty to their customers. The buyer`s representative must act in the best interests of the buyer and the seller`s representative must act in the best interests of the seller. A double agent would require loyalty to both sides of the bargaining table – a difficult, if not impossible, task. The dual agency occurs when the listing agent and the buyer`s representative are identical; it can also happen if both work for the same brokerage company. As intermediation benefits both sides of the transaction, the broker`s relationship with the buyer and seller is what determines the duale agency. And how many times have you asked someone else to check your work, to look at it with fresh eyes to catch something you may have missed? In a dual agency situation, there are no new eyes.

Two agents, brokers or entities involved may mean that one party may notice – or at least should – if the other makes a misstep to solve the problem. An officer who is responsible for only one party is called a single agent, and his loyalty is much clearer. SMAS has gained popularity with consultants and clients because it provides investors with a convenient opportunity to hold the underlying securities of a larger investment portfolio, unlike an investment fund or ETF in which the investor simply holds an interest in a higher fund. These types of managed accounts were designed to provide clients with challenging investment opportunities that in the past were only available to larger institutions. ALMs can offer more freedom of choice, tax and operational efficiency, and more personalized investment solutions. Some distinctive features should be considered in deciding whether SMEs with a dual or single contract are the best choice for RIAs and their clients to access these investments. Some real estate agents will try to trick you into accepting a duale agency by offering a commission discount. Do you want to save a few thousand dollars in commission just to make the colossal mistake of overpaying ten thousand dollars or more? A typical myth of the realtor is that it is a clever tactic to go directly to the agent of the list. It`s not true! The most common question we receive from secessionist advisors is: „When I launch an RIA, how can I create the products and services that I have always known about during my career at Wirehouse?“ This thinking often leads to questions about credit and alternative investments and inevitably ends up in separately managed accounts. In a recent FundFire article, it was found that „separately managed assets (AMS) have gone well beyond their pre-financial crisis peak,“ so Wirehouse consultants are offering these products to their clients and are concerned about how best to access ALMs on the RIA channel.