Dual agency: when one agent or brokerage represents buyer and seller

Why it matters

When one person or firm owes duties to both sides, it cannot fully advocate for either on the issues where they disagree, especially price. State laws respond by requiring disclosure and consent and by narrowing what the agent may do.

Common arrangements

Terms differ by state, but you are likely to see some version of these:

• Single agency. Your agent represents only you; the seller has a separate agent.
• Dual agency. One agent represents both sides with both parties' consent.
• Designated or appointed agents. One brokerage represents both sides, but different agents within it are assigned to each party.
• Unrepresented buyer. The listing agent shows you a home without representing you.

How Texas handles it

The Texas Real Estate Commission requires license holders to give buyers and sellers its Information About Brokerage Services notice. It describes a broker acting for both parties as an intermediary. To act that way, the broker must first get the written agreement of each party, stating who will pay the broker and setting out the intermediary's obligations in conspicuous bold or underlined print.

A Texas intermediary must treat all parties impartially and fairly. With written consent, the broker may appoint a different associated license holder to each party to give opinions and advice. Unless a party specifically authorizes it in writing, the intermediary must not disclose that the owner will accept less than the written asking price, that the buyer will pay more than the price in a written offer, or any confidential information a party instructs in writing not to share.

The same notice also says a license holder must have a written agreement with a buyer before showing a residential property.

How California handles it

California Civil Code section 2079.21 says a dual agent may not disclose confidential information from the seller to the buyer, or from the buyer to the seller, without express permission.

Questions to ask first

• Whom do you represent right now, and in what role?
• If I agree, what will you stop doing for me?
• Will a different agent in your firm be assigned to me?
• How are you paid, and does dual agency change your compensation?
• What happens if I decline?

Compensation questions

Since the 2024 National Association of Realtors settlement, NAR says buyers working with its members must sign a written agreement before touring homes, and that compensation is negotiable. A dual agent may be paid by both sides or by one; ask how it works in your deal and make sure your written agreement reflects it.

Should you agree?

Dual agency can work in simple deals where both parties already agree on terms and want speed. It is riskier when the price is contested, the home has issues, or you need hard negotiating. Declining is always an option, and you can bring in your own agent or a real estate attorney.

The bottom line

Dual agency means one agent or brokerage works for both sides. State law sets the rules, which usually require written consent and limit what the agent can share. Read your state's disclosure form, ask what you would give up and say no if you need a full advocate.