Dual agency significantly reduces the level of representation a buyer receives. The agent cannot fully advocate for the buyer's interests because they also represent the seller. The agent cannot disclose confidential information from either party to the other, such as the buyer's maximum budget or the seller's minimum acceptable price.
A buyer walks into an open house held by the listing agent and wants to make an offer. If the listing agent represents both sides, dual agency exists. The agent cannot tell the buyer that the seller would accept less, nor tell the seller the buyer would pay more.
Dual agency must be disclosed AND consented to IN WRITING by BOTH parties. Some states prohibit it entirely. The most common exam question: what can a dual agent NOT do? Answer: advocate for one party over the other or share confidential information.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Frequently Asked Questions
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