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Formal ban on double dipping

Formal ban on double dipping
23rd June 2017

Formal ban on double dipping

Dual agency, or ‘double dipping’, is when an agency acts on both sides of the transaction. For instance, they will be acting for the landlord letting a space as well as for the tenant acquiring the space. The problems this causes lead to the surveyor being unable to act in both clients’ best interests.

Dual agency has been a controversial point for a number of years in the commercial property industry. The Royal Institution of Chartered Surveyors, also known as RICS, has made a statement declaring that putting a formal ban in place will help to “maintain transparency, public confidence and integrity, specifically in the UK Commercial investment market”.

Morgan Pryce has a strong conflict avoidance policy. In fact, it was originally set up as a result of the levels of double dipping going on in the commercial industry. Eugene O’Sullivan, Managing Director at Morgan Pryce, says; “by being a tenant-only representative firm, we are able to avoid the conflicts of interest which most firms face, and can be completely transparent with our clients as they know we are acting solely on their behalves”.

The industry-wide ban will go into effect from 1st of January 2018, although larger firms are already claiming information barriers will be used to get around this ban.

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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