Agency & Representation

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Full Definition

Dual agency occurs when one agent — or one brokerage — represents both the buyer and 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 in price negotiation. Most states require written consent from both parties before a dual agency relationship can exist. In a disclosed dual agency, the agent must remain neutral and cannot advocate for either party's price position. Some states prohibit dual agency entirely; others require it to be a 'limited' or 'designated' agency.

Real-World Example

A buyer calls the listing agent directly and wants to submit an offer. If that same agent represents both the seller and the buyer, dual agency exists and both parties must consent in writing.

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How Dual Agency Appears on the Real Estate Exam

Common question types, tested concepts, and what to watch out for

Dual agency is heavily tested. Know that it requires informed written consent from both parties. Also know 'designated agency' — where two agents from the same brokerage each represent one party.