What is dual agency?

Dual agency occurs when a broker acts as a representative for both the buyer and the seller in the same real estate transaction. This situation can arise in real estate when the same broker or brokerage is involved in representing both parties, which may happen when they have a listing agreement with the seller and a buyer comes through the same brokerage.

In this role, the broker must navigate the dual interests of both the buyer and seller, ensuring that both parties are treated fairly while also managing the potential conflicts of interest that can arise. This requires a high level of transparency and ethical consideration to ensure that both parties are fully informed and agree to the arrangement.

For many local regulations and codes of ethics, brokers must disclose their dual agency status and often seek consent from both parties before proceeding. This balance is essential to maintaining trust and satisfaction among all involved in the transaction. The complexity and ethical considerations surrounding dual agency highlight the importance of understanding this concept for anyone working within the real estate profession.