What is Dual Agency?

In a typical real estate transaction, an agent from one real estate company works for the seller while
an agent from another real estate company works for the buyer. But something called dual agency
can occur when agents from the same real estate company represent both the buyer and the seller
in the same transaction.

Dual agency is more likely to happen in large companies that have many listings and agents. It can
also, occur when a single agent represents both the buyer and seller in the same transaction.
In either case, the buyer and the seller must consent to dual representation in writing prior to when a
real estate contract is executed since a possible conflict of interest might exist in this type of
representation.

Regardless of whether a real estate broker is representing a buyer or seller, they owe their client
fiduciary duties which include care, confidentiality, loyalty, obedience, accounting, and disclosure.

When representing both the buyer and seller, a broker can’t disclose confidential information
obtained from one party to the other.

While the dual agency is prohibited in some states, if you are faced with a dual agency situation, simply
ask your REALTOR® to explain the implications before you make any decisions.