Buying or selling a home already comes with enough moving parts. Add legal terminology and agency relationships into the mix, and it’s easy to feel overwhelmed.
One term that tends to raise eyebrows—and questions—is dual agency. Some people hear it and immediately assume it’s risky, while others don’t fully understand what they’re agreeing to until they’re already under contract.
The reality is that dual agency isn’t automatically good or bad. Like many things in real estate, it depends on the situation, the people involved, and how clearly expectations are set from the beginning. This article breaks down what dual agency really is, how it works, and what buyers and sellers should consider before moving forward.
What Dual Agency Means in a Real Estate Transaction
Dual agency occurs when one real estate agent represents both the buyer and the seller in the same transaction. Instead of advocating exclusively for one party, the agent takes on a neutral role once dual agency is established. This arrangement is legal in many states, but either restricted or prohibited in others.
A key requirement of dual agency is disclosure. Both the buyer and seller must be informed and must give written consent before the agent can represent both sides. Without that consent, the arrangement cannot legally proceed.
It’s important to understand that when dual agency is in place, the agent’s responsibilities change. They can manage paperwork, timelines, and communication, but they cannot negotiate on behalf of either party or provide advice that would favor one side over the other.
How Dual Agency Works in Practice
In a traditional transaction, each party has an agent whose job is to protect their client’s best interests. With dual agency, that dynamic shifts. The agent becomes more of a facilitator than an advocate.
For example, an agent in a dual agency situation cannot advise a buyer on how much to offer or suggest to a seller how low they might be willing to go. They also cannot share confidential information, such as motivation or financial pressure, from one party to the other.
In practice, this often means buyers and sellers must rely more heavily on their own research, comfort level, and outside advisors. Dual agency can feel smoother on the surface, but it requires all parties to clearly understand the limitations from the outset.
Pros and Cons of Dual Agency
One potential advantage of dual agency is simplicity. With one agent involved, communication can feel more direct, and there may be fewer delays caused by coordinating between multiple parties.
Some buyers and sellers also feel more comfortable knowing the agent is familiar with both sides of the transaction. In certain situations, this can reduce misunderstandings and keep deals moving forward.
The tradeoff is reduced advocacy. When dual agency is in place, neither party has someone fully negotiating on their behalf. For many people, especially first-time buyers or sellers, that loss of representation can be a significant drawback.
Who Dual Agency May Benefit Most
Dual agency tends to work best for experienced buyers and sellers who already understand pricing, negotiation, and the transaction process. These individuals are often more comfortable making decisions without guidance on strategy.
It can also make sense in straightforward transactions where both parties are aligned on price and terms early on. In those cases, the neutral role of dual agency may not feel limiting.
That said, even seasoned clients should carefully consider whether convenience outweighs the benefits of full representation. Dual agency is not a shortcut—it’s simply a different structure.
Making an Informed Decision About Dual Agency
The most important part of entering into dual agency is clarity. Buyers and sellers should fully understand what the agent can and cannot do once the relationship changes.
As a Realtor, I’ve found that problems arise when people assume the agent is still advocating for them the same way they would in a single-agency situation. Clear expectations early on prevent frustration later.
Ultimately, dual agency should be a deliberate choice, not a default. When everyone understands the boundaries and responsibilities involved, the transaction is far more likely to feel fair and transparent.
Frequently Asked Questions
Is dual agency legal everywhere?
No. Dual agency is legal in many states but restricted or prohibited in others. State laws and brokerage policies determine how it can be used.
Does dual agency mean the agent is working against me?
No. In dual agency, the agent is neutral, not adversarial. However, they are also not advocating exclusively for either party.
Can I say no to dual agency?
Yes. Buyers and sellers are not required to agree to dual agency and can request separate representation.
Does dual agency reduce commission?
Not always. Commission structure varies and should be discussed upfront before agreeing to any agency relationship.
Should first-time buyers avoid dual agency?
Often, yes. First-time buyers typically benefit from having an agent fully dedicated to representing their interests.
