What Is a Dual Agency in Real Estate?
A dual agency occurs when one real estate agent or brokerage represents both the buyer and the seller in the same transaction. While this setup can streamline communication, it also creates potential conflicts of interest that are regulated differently by state law.
💼 How Dual Agency Works
- The same agent or brokerage represents both parties.
- Both buyer and seller must provide informed written consent.
- The agent must remain neutral and cannot favor one side over the other.
- Negotiations and advice may be limited to avoid bias.
Dual agency is legal in many states but restricted or prohibited in others due to the potential conflict between representing two sides of the same deal.
⚖️ Pros and Cons of Dual Agency
- ✅ Pro: Faster communication and potentially quicker closings.
- ✅ Pro: Both parties work through one point of contact.
- ⚠️ Con: Limited representation and negotiation advice.
- ⚠️ Con: Possible conflict of interest between buyer and seller goals.
🏠 Dual Agency and FSBO Sellers
When you list For Sale By Owner (FSBO) through Brokerless, you stay in control of the sale while exposing your property to all buyer agents on the MLS. This eliminates the risk of dual agency and ensures transparency between parties.