June 25, 2024
Can A Real Estate Agent Represent Both A Buyer And A Seller? Real

Understanding Dual Agency

What is Dual Agency?

When it comes to the real estate industry, dual agency refers to a situation where a real estate agent represents both the buyer and the seller in a transaction. In other words, the same agent acts as an intermediary for both parties involved. This practice has been a topic of debate and controversy in the industry for quite some time.

The Pros of Dual Agency

One of the main advantages of dual agency is the potential for cost savings. Both the buyer and the seller can negotiate a lower commission rate since the same agent is handling both sides of the transaction. Additionally, having a single point of contact can streamline communication and make the process more efficient.

The Cons of Dual Agency

On the flip side, dual agency poses several risks and drawbacks. The most significant concern is the conflict of interest that arises when an agent represents both parties. It becomes challenging for the agent to provide unbiased advice and prioritize the best interests of both the buyer and the seller. This can lead to potential legal issues and dissatisfaction from either party.

Legal Regulations on Dual Agency

State-Specific Regulations

The permissibility of dual agency varies from state to state. Some states prohibit it entirely, while others impose strict regulations and disclosure requirements. It is crucial for both buyers and sellers to familiarize themselves with the specific laws and regulations in their respective states.

Disclosure Requirements

In states where dual agency is allowed, real estate agents are required to disclose their role as a dual agent to both the buyer and the seller. This disclosure ensures transparency and allows both parties to make informed decisions. Failure to comply with these disclosure requirements can result in legal consequences for the agent.

Alternatives to Dual Agency

Designated Agency

Many states offer an alternative to dual agency called designated agency. In this arrangement, the real estate brokerage assigns different agents within their firm to represent the buyer and the seller separately. This eliminates the conflict of interest that comes with dual agency and provides each party with dedicated representation.

Buyer’s Agent and Seller’s Agent

Another option is for the buyer and the seller to each hire their own individual real estate agent. This ensures that each party has an advocate who solely represents their interests throughout the transaction. While it may result in higher commission fees, it provides a higher level of protection and reduces the risk of conflicts.


While dual agency can be a cost-saving and efficient option for some, it is essential to weigh the pros and cons carefully. Understanding the legal regulations in your state and exploring alternative options can help you make an informed decision. Ultimately, the goal is to ensure that both the buyer and the seller have proper representation and a smooth real estate transaction.