Dual Agency from Buyer Perspective
Definition
A situation where one agent or brokerage represents both the buyer and seller in the same transaction, requiring informed written consent from both parties due to inherent conflicts of interest.
Example
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.
Exam Tip
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 Buyer Rep Terms
Buyer Broker Duties
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Buyer Representation Disclosure
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.
Cooperative Compensation
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.
Buyer Consultation
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.
Buyer Loyalty Obligation
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.
Termination of Buyer Agency Agreement
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
Test Your Buyer Rep Knowledge
Practice with exam-style questions to make sure you can apply Dual Agency from Buyer Perspective and other buyer rep concepts.