Multiple representation arises when a designated agent or brokerage represents multiple clients with competing interests in the same real estate transaction.
This practice can create a conflict of interest, as the representative is responsible for advocating for the best interests of all clients, and these interests may be at odds with each other in cases of multiple representation.
At Zolo, our policy is that every agent operates as a designated representative. By assigning a specific advocate to each client, we prioritize individual interests and significantly reduce the likelihood of multiple representation occurring.
When does it arise?
The occurrence of multiple representation depends on the agency model being used:
Under brokerage representation, multiple representation arises when the same brokerage represents both a buyer and a seller (or competing buyers) in the same transaction.
Under designated representation, the brokerage can have multiple clients in the same transaction, since each client will have a designated representative assigned to advocate for their client.
However, even under the designated model, multiple representation still occurs when a single agent acts as the designated representative for both the buyer and seller, or for multiple competing buyers for the same property.
Multiple representation is not advised due to its inherent risks and potential to compromise your client's best interests. For more information, please consult this article.