What is dual agency in a real estate transaction?

Dual Agency in a real estate transaction is an arrangement where one broker or agent represents both the buyer and seller in a real estate transaction. Dual Agency is allowed in some states, like California, but in California, both the buyer and seller have to provide written consent in order for an agent or broker to act as dual agent. Dual Agency can create a conflict of interest, as the dual agent has a duty to share all material facts with both parties and must remain impartial throughout the transaction. This means he or she has to put the interests of both the buyer and seller on equal footing and cannot give one party preferential treatment over the other. That said, it’s important for the agent to disclose any potential conflicts of interest to the buyer and seller to ensure there is an understanding and agreement between all parties involved. The benefits of Dual Agency include creating a smoother sales process by simplifying the negotiation between both parties, as buyers and sellers tend to be more willing to negotiate when dealing with an impartial third party. In addition, the dual agent can help identify issues in the transaction, suggest solutions and work to expedite the closing process for all parties involved. Ultimately, Dual Agency can be a great fit for some, however, it’s important to be aware of the potential risks and ensure both parties understand their rights throughout the process.

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What is dual agency in a real estate transaction?

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