What is Dual Agency in Real Estate?

Dual agency occurs when a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. This creates an inherent conflict of interest because the agent owes fiduciary duties to both parties, who have opposing interests — the seller wants the highest price while the buyer wants the lowest. In states where dual agency is permitted (the majority of states), it requires informed written consent from both the buyer and the seller before the agent can proceed.

The dual agent typically cannot share confidential information from either party with the other, such as the seller's lowest acceptable price or the buyer's highest willingness to pay. Some states address the dual agency conflict through "designated agency" or "appointed agency," where the broker assigns separate agents within the same brokerage to represent each party independently, while the broker itself remains a dual agent. Several states prohibit dual agency entirely, including Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont (these states use transaction broker or facilitator models instead).

In dual agency situations, the agent's ability to advocate, advise, and negotiate on behalf of either party is significantly limited. The agent essentially becomes a neutral facilitator who can only provide factual information, not strategic advice. This limitation is why many consumer advocates recommend that buyers and sellers use separate agents from different brokerages.