New Hampshire Adopts New Real Estate Legislation

New Hampshire Accepts Designated Agency

Recent legislation passed in New Hampshire in the form of House Bill 1384. New Hampshire, a "dual agency" state, is making the switch to "designated agency" effective January 1st, 2009. Dual agency will still be allowed and it will remain up to the real estate offices to decide if they will practice dual agency or designated agency.

How Does This Affect The Consumer?

First let me explain a little bit about the differences. Currently, when you, the client, have a real estate agent from firm XXX list your home, every single agent within firm XXX becomes your fiduciary and represents you, not just the listing agent. Sound great, right? Well, the problem exists when another agent from the same firm XXX brings in the buyer for your home. When that happens, you just entered into "dual agency" if you give your consent. Both agents represent both the buyer and the seller. Dual agency then must be disclosed and neither agent can represent you to their full extent, as they would wish to do, without breaking their fiduciary responsibilities to the other client. In my opinion, it really never has made much sense.

On January 1st, if an office chooses to do so, "designated agency" will be used. Now let's take the example from above. When you list your home with an agent from firm XXX, that sole agent will be your designated agent. And if an agent from the same firm brings in the buyer, that agent will be the designated agent for the buyer only. And the two agents, although under the same agency, will be able to act seperate from each other and give both clients FULL fiduciary responsibilities and better representation.

The consumer wins!

Dual agency can still occur in the same office, however. This can occur, for example, when your listing agent brings in the buyer him/herself. For the real estate transaction to be able to take place, the consumer must accept the dual agency and give consent. The consumer still holds the power to decline consent.

Keller Williams Coastal Realty in Portsmouth will be practicing designated agency. If you need any more information on agency relationships, please give me a call. I would be happy to help. 603.610.8944