Navigating Dual Agency: One Agent, Two Clients

Answer

Dual agency occurs when a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. This setup can streamline communication and coordination, but it also raises unique ethical and legal considerations under U.S. real estate law.

In a dual agency arrangement, the agent must balance the interests of both parties without favoring one side. States that allow dual agency—such as California, Florida, and Texas—require strict written disclosure and informed consent from both buyer and seller. Not all states permit this practice; for example, Colorado and Washington prohibit true dual agency, instead offering a “designated agency” model to limit conflicts.

• Agent Responsibilities: Maintain confidentiality of each party’s negotiating position, share material information equally, and avoid advising one side on strategy that could harm the other.
• Disclosure Requirements: Provide a written dual agency agreement outlining duties, potential conflicts, and how commissions will be split.
• Potential Benefits: Faster decision-making, unified scheduling for showings, and a single point of contact during negotiations.
• Common Concerns: Limited advocacy—agents cannot negotiate aggressively for either side or disclose private motivations (e.g., the seller’s lowest acceptable price).

Some brokerages use designated or appointed agency to mitigate these issues by assigning separate agents within the same firm to each client. This preserves advocacy while maintaining in-house coordination. Always verify with your state’s real estate commission or consult the National Association of Realtors for local regulations and model disclosure forms.

Dual agency can suit simple transactions where both parties seek efficiency, but buyers and sellers are recommended to weigh the trade-offs carefully. For personalized guidance on whether dual agency fits your situation, it’s advisable to consult a licensed real estate professional or attorney familiar with your state’s rules.