Published July 25, 2025

REC Difference :: NO Dual Agency

Written by Paige Kahle

REC Difference :: NO Dual Agency header image.

At The Real Estate Collaborative (REC), transparency isn’t just a buzzword—it’s a core value that shapes how we serve our clients every day. One area where transparency is especially important is in how we handle agency relationships during a real estate transaction. While dual agency is legal in Minnesota, we believe it presents an inherent conflict of interest and falls short of providing the clear, dedicated representation our clients deserve.

DISCLAIMER :: REC is a small Brokerage and the scenario outlined below is rare and not the norm. The large, corporate Brokers engage in dual agency on a regular basis.

Why Dual Agency Falls Short
Dual agency occurs when a single Realtor or Brokerage represents both the buyer and the seller in the same transaction. On paper, this might seem efficient, but in reality, it effectively cancels out meaningful representation for both parties. The broker is caught in the middle, unable to advocate exclusively for either side’s best interests. Meanwhile, brokers who engage in dual agency often receive double the commission by “double-ending” the deal—a practice sometimes referred to in the industry as “hogging.” From a consumer standpoint, this arrangement raises a critical question: why pay full commission for representation that isn’t fully dedicated to you?

At REC, we find this practice not only unprofessional but also fundamentally unfair to buyers and sellers alike. It’s not consumer-friendly, and it doesn’t align with our commitment to transparency and advocacy.

REC’s Transparent Approach to In-House Listings
Recognizing the pitfalls of dual agency, REC has developed a more transparent and client-focused way to work with buyers interested in our in-house listings. Here’s how it works:

If you're interested in a REC listing, you have three options: we can refer you to a partner Realtor from another brokerage to represent you; or we can act in a transactional role—simply writing the offer, moving through inspection and closing with a reduced fee, without representing you; or, you can choose your own Realtor without guidance from REC.

OPTION 1 :: Referral of Buyer to a Partner Realtor

Mechanism: REC refers the Buyer to a trusted Realtor affiliated with a different brokerage. (Our referral fee is a flat $500 substantially lower than the 25% industry standard for referrals that are seldom disclosed. We have asked all our Referral Partner Realtors to charge a flat dollar amount. How much they charge should be negotiable between you and them.)
Role of Partner Realtor: This partner Realtor will represent the buyer for that specific transaction. This means they will act in the buyer's best interests, provide advice, negotiate on their behalf, and owe them fiduciary duties (loyalty, confidentiality, disclosure, etc.).
Contingency: If the offer on that specific property does not work out, the Buyer would return to REC (if they desired) to continue their property search.
Benefit for Buyer: Full representation, ensuring their interests are protected throughout the negotiation and closing process. This option should not cost the Buyer any more money.
Benefit for REC: Maintains a relationship with the Buyer even if they are interested in an REC-listed property, by ensuring the Buyer receives independent representation.

OPTION 2 :: REC Takes a Transactional Role with the Buyer (No Representation)

Mechanism: REC will not represent the buyer. Instead, they will operate in a "transactional role," on the buyer's behalf
Role of REC: In this role, REC's duties are limited to:
- Writing the offer for the buyer and ensuring all applicable laws are folllowed.
- Facilitating the transaction through to closing.
- REC will essentially process the paperwork and coordinate the transaction without advocating for the buyer's specific interests. REC will continue representing the Seller. REC owes ALL parties confidentiality and fairness.
Fee Reduction: Since REC is not providing full representation, our fee for this service will be significantly reduced.
Implication for Client: The client will not have a Realtor representing their best interests. They will be responsible for their own due diligence, understanding of the contract, and negotiation strategy. REC will not be providing advice or advocacy.
Benefit for Client: A reduced fee.
Benefit for REC: Allows them to close a deal on their own listing while still offering a service to the interested party, albeit a limited one.

OPTION 3 :: Choose your own Realtor without REC's assistance. Know that the compensation you pay to any Realtor is fully negotiable.

Key Takeaways for a Client:

Representation is Crucial: Option 1 provides the client with a dedicated representative whose sole focus is their best interest. This is generally recommended for most buyers, especially those who are not experienced in real estate transactions.
Understanding the Risks of No Representation: If a client chooses Option 2, they need to be fully aware that REC will not be advocating for them. They will essentially be their own advocate in terms of understanding the complexities of the transaction and protecting their own interests.
Weighing Cost vs. Service: The decision between the first two options boils down to a trade-off between the cost (reduced fee in Option 2) and the level of service and protection (full representation in Option 1).

At REC, we believe that home matters deeply, and that starts with honest, transparent representation that puts you first. If you’re interested in learning more about how REC’s approach can make your home buying experience clearer, fairer, and more empowering, don’t hesitate to reach out.

Reach out to us at hello@therecollab.com or call +1 651-412-3765. We are here to make your home purchase or sale a transparent and successful experience.

REC. Real Estate. Radically Reimagined.