What is “dual agency” in real estate transactions?

Dual agency occurs when a single real estate agent or broker represents both the buyer and the seller in a transaction. This situation typically arises in cases where both parties are in agreement to allow the same agent to facilitate the sale, and it requires full disclosure and consent from both parties due to the inherent potential for conflict of interest.

In dual agency, the agent holds a fiduciary duty to both clients, meaning they must act in the best interests of both the buyer and seller while navigating the complexities of the transaction, including negotiations over price and terms. This shared representation can simplify communications and streamline the process, but it also places a burden on the agent to manage the interests of both parties equitably.

This is distinct from scenarios where multiple agents represent a single buyer (which would not constitute dual agency), transactions involving multiple properties, or where an agent is affiliated with different brokerages, all of which entail different dynamics than those seen in dual agency relationships.