April 13, 2024

Understanding Dual Agency

When it comes to real estate transactions, the role of the real estate agent is crucial. They act as intermediaries between the buyer and seller, helping both parties navigate through the complexities of buying or selling a property. But can a real estate agent represent both the buyer and seller in a single transaction? The answer is yes, but it comes with certain conditions and limitations.

What is Dual Agency?

Dual agency occurs when a real estate agent represents both the buyer and seller in a transaction. In this scenario, the agent acts as a neutral party, ensuring that the interests of both parties are protected. However, it is important to note that dual agency is not allowed in all states and may be subject to specific regulations and disclosures.

The Pros of Dual Agency

One of the main benefits of dual agency is that it can streamline the buying and selling process. Having a single agent representing both parties can help facilitate communication and negotiation, leading to a smoother transaction. Additionally, dual agency can often result in cost savings for both the buyer and seller, as the agent may be willing to negotiate a lower commission rate due to representing both sides.

The Cons of Dual Agency

While there are advantages to dual agency, there are also potential drawbacks. One concern is that the agent may not be able to fully advocate for either the buyer or the seller, as they have a duty to remain neutral. This could potentially lead to conflicts of interest or a lack of representation for one party. Additionally, there may be a perception of bias or favoritism, which could undermine trust in the transaction.

Alternatives to Dual Agency

In situations where dual agency is not allowed or desired, there are alternatives that can still provide representation for both the buyer and seller. One option is for each party to have their own designated agent within the same brokerage. This allows for separate representation while still benefiting from the convenience of working within the same agency. Another option is for each party to hire an agent from a different brokerage, ensuring completely independent representation.

Disclosure and Informed Consent

In states where dual agency is permitted, it is crucial for the agent to provide full disclosure and obtain informed consent from both parties. This means explaining the potential risks and benefits of dual agency and ensuring that both the buyer and seller understand the implications of this arrangement. By providing transparency and obtaining consent, the agent can help mitigate any potential conflicts or concerns.

Choosing the Right Agent

Whether you decide to pursue dual agency or opt for separate representation, it is important to choose the right agent for your needs. Look for an agent who has experience and expertise in your specific market, and who is committed to providing excellent service. Additionally, consider meeting with multiple agents to ensure a good fit and to compare their approach to representing buyers and sellers.


While it is possible for a real estate agent to represent both the buyer and seller in a transaction, it is important to carefully consider the implications and potential limitations of dual agency. By understanding the pros and cons, exploring alternative options, and choosing the right agent, you can ensure a successful and well-represented real estate transaction.