Dual Agency
Definition
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
Example
A listing agent holds an open house and an unrepresented buyer wants to write an offer. If the agent represents both sides, it becomes dual agency. The agent must disclose this and get written consent before proceeding.
Exam Tip
Key exam points: (1) dual agency requires WRITTEN consent from BOTH parties, (2) the agent CANNOT share confidential info between parties, (3) some states PROHIBIT it entirely. Know your state's rules.
Related Agency Terms
Agency Relationship
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
Fiduciary Duty
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
Designated Agency
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
Transaction Brokerage
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
Agency by Estoppel
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
Agency by Ratification
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
Frequently Asked Questions
Test Your Agency Knowledge
Practice with exam-style questions to make sure you can apply Dual Agency and other agency concepts.