Dual agency matters for every real-estate client because it changes how your interests are represented and negotiated. Whether you’re buying, selling, investing, or studying real estate law, understanding “dual agency” can save you money, time, and legal headaches.
Who should care? Buyers want the best deal. Sellers want top dollar. Investors look for streamlined transactions. Students of real estate law need clarity on fiduciary duties and disclosure requirements. Dual agency sits at the intersection of all these concerns.
Dual agency occurs when the same real-estate agent or brokerage represents both the buyer and the seller in a single transaction. One professional effectively serves two clients whose interests may conflict, so full disclosure and written consent are mandatory.
In a single-agent model, one agent represents only you—either buyer or seller—and owes you full loyalty. Under designated agency, two agents from the same brokerage each represent one side exclusively. By contrast, dual agency collapses both roles into one, requiring the agent to remain neutral and not favor either party.
Even in dual agency, the agent must uphold core fiduciary duties: confidentiality, loyalty, disclosure, obedience, reasonable care, and accounting. However, the scope of these duties narrows. The agent cannot share confidential priorities—like the seller’s minimum acceptable price or the buyer’s maximum budget.
Because representing both sides creates inherent conflicts, most states require the agent to provide a written dual-agency disclosure. This form explains the neutral position the agent will take and prohibits favoring either party. If the agent fails to disclose, the arrangement may be voidable and expose the agent to sanctions.
Disclosure and consent typically occur at first substantive contact—often when you sign a listing agreement or buyer-broker agreement. Some jurisdictions have strict deadlines, such as 24 or 48 hours after identifying a dual-agency situation. Never sign after negotiations begin; early consent protects both sides and avoids “undisclosed dual agency.”
Many U.S. states and Canadian provinces permit dual agency with proper disclosure and consent. Examples include California, Florida, Ontario, and British Columbia. Rules vary by jurisdiction, so always check your local regulatory body.
Some areas restrict or ban dual agency outright. Texas prohibits dual agency but allows designated agency. Colorado forbids an agent from representing both parties; the brokerage can appoint separate agents under the broker’s supervision.
Disclosure forms differ by state/province: some require detailed descriptions of potential conflicts, others use a checkbox format. Deadlines for signing can range from “before any written offer” to “immediately upon dual-agency confirmation.” Verify local rules to avoid invalid consents.
The Johnson family lists their current home with Broker A and simultaneously agrees to purchase another property through the same brokerage. Broker A explains the dual-agency arrangement, secures written consent, and handles showings, offers, and counteroffers for both transactions.
How the agent manages showings: Broker A schedules non-overlapping tours and provides identical information packets to both sides, ensuring no hidden details.
How offers and negotiations unfold: When the Johnsons submit an offer on their new home, Broker A delivers it without revealing the minimum price the seller would accept. When representing the Johnsons’ sale, Broker A markets aggressively but doesn’t disclose the buyer’s maximum budget.
Where conflicts could arise: If the Johnsons wanted to pay $450,000 but the seller would accept $440,000, Broker A must neither push the buyer higher nor settle the seller lower. Disclosures protect both sides by outlining these neutral limitations.
Hire separate agents: one for buying, one for selling. Each agent owes you full fiduciary duty and can negotiate zealously on your behalf.
In designated agency, two agents from the same firm each represent a client exclusively. In a transaction brokerage, the firm facilitates paperwork but does not owe fiduciary duties to either party, acting instead as a neutral facilitator.
If the transaction is complex—commercial deals, high-value estates, legal disputes—an attorney can review contracts, advise on liability, and negotiate independently, ensuring your interests are fully protected.
Check with your local real-estate commission. Many jurisdictions allow it with disclosures; some ban it or require alternative structures.
Yes. You always have the right to independent representation. If you’re uncomfortable, request a different agent or firm.
Dual agency means one agent represents both sides. Designated agency means two agents in the same brokerage each represent one side exclusively.
Sometimes brokers offer reduced total commissions for dual-agency deals. Always negotiate fees upfront and get agreements in writing.
Potentially. With one agent, you forego separate advocates. Assess whether you trust the agent’s neutrality before consenting.
If you value transparency and speed, dual agency may fit. If you need aggressive advocacy, separate agents provide stronger negotiation power.
Dual agency means one agent represents buyer and seller in the same transaction. It offers streamlined communication and potential cost savings but dilutes full advocacy and poses conflict-of-interest risks. Always get written disclosures, understand your rights, and vet your agent carefully.
Next steps: Review your state’s rules, ask the right questions, compare representation models, and choose the structure that best protects your interests.
