Definition
Dual agency is when one agent or company represents both you and the seller. It creates conflicts of interest because the agent can't fully advocate for either party.
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Dual agency creates inherent conflicts of interest because the agent is obligated to represent both parties' interests, which are usually opposed. While some states allow dual agency with proper disclosure and written consent, many real estate professionals consider it problematic. In dual agency, the agent cannot fully advocate for either party and may not share confidential information with either side. Buyers and sellers should understand the limitations of dual agency representation.
Pro Tip
Avoid dual agency if possible. It creates conflicts and limits agent advocacy.
Example
The brokerage represented both the buyer and seller, requiring written dual agency agreements.