In today’s fast-paced real estate market, knowing what a dual agent is can save you from unexpected conflicts and ensure you get clear, neutral guidance whether you’re buying or selling.
This article is for anyone involved in or reporting on property transactions—homebuyers, sellers, investors, students and journalists seeking a concise, glossary-style overview of dual agency.
A dual agent is a single real estate agent or brokerage that represents both the buyer and the seller in the same transaction. This means the agent owes duties to both parties simultaneously, requiring neutrality throughout negotiations.
In single agency, one agent represents only the buyer or only the seller. In designated agency, two agents from the same brokerage each represent one party exclusively, preventing conflicts of interest within the firm.
An agent lists a home for a seller, then finds a buyer through marketing or an open house. If that buyer becomes a client, the agent must switch to dual agency—representing both sides once consented.
Dual agency is established in written form via listing agreements, buyer-broker agreements or standalone disclosure documents. All parties must sign to acknowledge the dual role before the agent proceeds.
Even as a neutral intermediary, a dual agent must maintain confidentiality, exercise reasonable care and account for funds and disclosures to both buyer and seller.
Because the agent represents opposing interests, they cannot offer undivided loyalty or fully advocate for one party’s position over the other.
Typical conflicts include negotiating price reductions, sharing confidential offer strategies or advising on inspection repairs—areas where one party’s gain is the other’s loss.
Most states permit dual agency with proper disclosures, but a few—like Texas—ban it entirely. Some states restrict it to in-house brokerage situations.
Disclosure forms must be provided early in the process—often at first substantive contact—and signed before detailed negotiations begin.
Visit your state real estate commission’s website or consult a licensed attorney to review local statutes and required forms regarding dual agency.
If both parties prioritize a quick sale and trust the agent’s neutrality, or in a tight market with few alternatives, dual agency can offer convenience.
Ask for a clause ensuring confidentiality and explicit limits on price negotiations. Avoid broad language that allows unlimited dual-agent discretion.
Consider hiring separate agents or insisting on designated agency within the same brokerage to preserve full advocacy and loyalty.
Sarah and Tom tour a home listed by Agent Lee. They decide to make an offer through Lee, who explains dual agency and provides the disclosure form.
Always get written consent, ask how confidential data will be protected and be clear on negotiation limits before proceeding with a dual agent.
A dual agent represents both buyer and seller, while a listing agent represents only the seller and a buyer’s agent represents only the buyer.
By law, a dual agent must remain neutral. They can relay offers and counteroffers but cannot push aggressively for one side.
They owe confidentiality, reasonable care and proper accounting—but not undivided loyalty or full advocacy.
Commission splits and blended fees may be less transparent, and conflicts of interest can arise if the agent prioritizes closing quickly over best terms.
Simply request an exclusive buyer’s or seller’s agent in writing. If the listing agent insists on dual agency, you can walk away or hire an independent broker.
Dual agency means one agent represents both sides, requiring strict neutrality and full disclosures. It offers convenience but limits advocacy.
Check your state real estate commission’s site or reputable legal guides for sample disclosure forms and updated regulations.
Weigh the trade-offs: for full advocacy, opt for exclusive representation; for streamlined communication, confirm dual agency with clear consent and safeguards.
