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American Grassroots

6776 Little Falls Road Arlington, VA 22213 703-536-7745   Fax: 703-536-7079 AHGA@americanhomeowners.org www.americanhomeowners.org

September 12, 2005

TO THE EDITOR OF BOSTON MAGAZINE:

The American Homeowners Grassroots Alliance is opposed to the introduction of “Double Agency” into the Massachusetts marketplace, and commends you for your recent article on this subject. We want you to know that we consider this practice to be anti-consumer and not in the best interest of homeowners in the Bay State.

Under the existing common law in effect in Massachusetts, homeowners had always been able rely on loyal advocacy, confidentiality and representation from the entire firm when they list their property for sale with any real estate agency.

The Realtors’ new statute, enacted without publicity or hearings, turns this fiduciary benefit around 180 degrees so that the Seller can now count on one person, the listing agent, to be on his/her side. All the other agents in the firm the Seller retains can legally be representing Buyers and negotiating for a lower not higher price and be working against the Seller. It’s tantamount to saying “Come list your property with one of our agents so the rest of the agents can work against you”.

This Double Agency is a deceptive practice similar to the conflicts of interest and self-dealing recently exposed in the investment banking, accounting/auditing, and insurance brokerage sectors. Now the Department of Justice is quite properly investigating similar anti-trust issues and anti-consumer practices in the real estate industry. In the meantime, home sellers must beware.

Serving the interests of the nation's 75 million homeowners and future homeowners since 1984. The American Homeowners Grassroots Alliance is a nonpartisan consumer advocacy organization dedicated to assisting the nation's 75 million homeowners understand significant policy issues affecting homeowners and homeownership, and empowering homeowners to make their voices heard by state and federal officials. The American Homeowners Foundation is an educational and research foundation providing information and tools to help consumers make wiser decisions when they buy, sell, remodel, finance or invest in homes.