What is dual agency in a real estate transaction?

Dual agency in a real estate transaction is when a real estate broker or agent represents both the seller and the buyer in the same transaction. The agent is acting as both a fiduciary for the seller and a facilitator for the buyer. Dual agency is legal in most states, including Delaware. Informally, dual agency is also known as designated agency. This is when a single broker or agency represents both the buyer and the seller in the same transaction. This type of arrangement is less common than it once was as many real estate agents are uncomfortable with the potential for conflict of interest. For example, if the seller and the buyer disagree on terms, the real estate broker must remain impartial and refrain from taking sides. When entering into a dual agency situation, all parties must sign a written agreement that outlines each parties’ roles and responsibilities, as well as the responsibilities of the real estate agent or broker. This agreement will make clear that the real estate agent or broker is representing both the seller and the buyer in the same transaction. In Delaware, dual agency is legal and is regulated by the Delaware Real Estate Commission. It is important that all parties understand their rights and responsibilities before entering into a dual agency real estate transaction.

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What is dual agency in a real estate transaction?

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