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Trust: Who is really on your side · Home & real estate

Dual agency in real estate: fair or not?

In most home sales, the buyer and the seller want opposite things: one wants a lower price, the other a higher one. Dual agency happens when the same agent, or the same brokerage, represents both of them at once. Many people compare it to one lawyer representing both sides of a divorce. Others say it can make a simple deal smoother.

Is it fair for one agent or brokerage to represent both the buyer and the seller?

Be one of the first to vote.

What happens

It often starts when a buyer calls the agent named on a listing sign or website. That agent already works for the seller. If the buyer has no agent of their own, the listing agent may offer to represent them too. It can also happen when two agents at the same brokerage handle the two sides, since the brokerage itself then has duties to both.

Where dual agency is allowed, both people usually must agree in writing. Once they do, the agent is supposed to stay neutral. That means the agent generally cannot tell the seller how high the buyer will go, or tell the buyer how low the seller will accept. Each side gives up having someone fully in its corner.

Why many people say it’s not fair

  • Buyer and seller have opposite goals on price and terms, and one person cannot fully push for both.
  • The agent may earn more by keeping both sides of the deal, which can color their advice.
  • Consent forms are often signed quickly, in the middle of a deal, without a clear explanation.
  • A neutral agent cannot give you full advice about price, so you may lose your best advocate.
  • Older or first-time buyers may not realize they can decline and get their own agent.
  • Information shared early, before anyone signs, may already have shaped the agent's view.

The other side

Agents and brokerages say dual agency can make a sale faster and simpler, with one person coordinating inspections, paperwork and closing. A listing agent often knows the home best and can answer a buyer's questions right away. Some buyers and sellers value that and are comfortable without a full advocate.

Supporters also point out that the law usually requires disclosure and written consent, that the agent must stay neutral and keep each side's confidential information private. Large brokerages add that assigning separate agents within the firm keeps clients from being turned away.

Options you may not be told about

You can say no. Where dual agency is allowed, it generally requires your consent, so you can refuse and ask for a referral to an agent at a different brokerage.
Hire your own buyer's agent before you call about a listing, so the seller's agent never becomes your agent by default.
Ask whether the firm offers designated agency, where a different licensee at the same firm represents you. Massachusetts, for example, describes this on its official disclosure form.
Ask for a facilitator or transaction broker role instead, where the licensee helps both sides but represents neither. Florida law presumes this role unless another relationship is put in writing.
Hire a real estate attorney to review the contract and advise you alone, even if you keep the agent for showings and paperwork.

What you can do

  1. Before touring a home, ask the agent plainly: "Who do you represent in this sale?"
  2. Read any agency disclosure or consent form before signing, and ask what the agent can no longer do for you.
  3. Do not share your top price or deadline with an agent who works for the other side.
  4. Ask whether the commission changes if the agent represents both sides.
  5. If you feel pushed into consenting, pause and get advice from your own agent or attorney.
  6. Report problems to your state real estate commission or licensing board.

Rules and your rights

Rules on dual agency are set by each state, and they differ widely. Florida law says a licensee may not act as a disclosed or nondisclosed dual agent, and presumes licensees are transaction brokers unless another relationship is set in writing. Texas does not permit dual agency; a broker who represents both sides must act as an intermediary under the state's notice-and-consent rules. Massachusetts allows dual agency only with informed written consent from both buyer and seller. Check your own state's real estate commission for its rules and to file a complaint.

Has this happened to you? Share what happened so others know what to expect.

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Common questions

Is dual agency legal?

It depends on the state. Many states allow it if both buyer and seller are told and agree in writing. Others ban it or replace it with a different arrangement. Florida does not allow licensees to act as dual agents, and Texas uses an intermediary role instead. Your state real estate commission can tell you the rules where you live.

Can I refuse dual agency?

Yes. Where dual agency is allowed, it generally depends on your consent. You can decline and ask to be referred to an agent at another brokerage, or hire your own agent before you make an offer. Refusing may mean the listing agent works only for the seller and treats you as a customer, not a client.

What is the difference between dual agency and designated agency?

In dual agency, one agent or firm represents both sides and must stay neutral. In designated agency, the brokerage assigns different agents within the same firm to each side, so each person has someone representing them. The firm still has ties to both sides, so it is worth asking how confidential information is protected.

Sources: Florida Statutes 475.278, Authorized brokerage relationships ↗ · Texas Real Estate Commission: May a broker act as a dual agent? ↗ · Massachusetts Board of Real Estate: Mandatory licensee-consumer relationship disclosure ↗

General information, not legal, financial or real estate advice. Whether a practice is fair is a matter of opinion; votes and shared experiences are the views of site visitors, not AblePro, Inc. Rules and company policies change; check current terms and your state’s rules.