What is dual agency in a real estate transaction?

Dual agency in a real estate transaction is a situation in which the same real estate broker, or one from the same firm, represents both the buyer and the seller in the transaction. In such situations, the broker is said to have dual agency. The broker must be licensed in the state they are working in, and will be responsible for acting as a mediator between the two parties. New Hampshire has regulations in place which govern the use of dual agency in residential real estate transactions. The broker must advise both parties in writing about the possible risks involved in having the same broker represent both sides, and must provide both parties with a copy of the Dual Agency Agreement. In a dual agency situation, it is the responsibility of the broker to be fair and neutral to both parties and to work in the best interests of both. The broker must remain objective and cannot favor either party. The broker also cannot give advice or opinion regarding the transaction to either party, as this could be seen as bias. Dual agency can be an advantage to both the buyer and the seller, as it eliminates the need to hire two separate brokers, and the transaction may move more quickly, as the one broker will be able to handle the negotiation of both parties. However, it also poses certain risks to both parties, which is why it is important to understand the regulations and guidelines in place in New Hampshire.

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What is dual agency in a real estate transaction?

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