What is a dual agency in a real estate transaction?

A dual agency in a real estate transaction is when the same real estate brokerage or real estate agent represents both the buyer and the seller. In Hawaii, this is a situation where the broker, acting as an agent, is in a fiduciary relationship with both the buyer and the seller. This relationship of trust requires the broker to act honestly and in the best interest of all parties of the deal. Dual agency requires the agent to ensure that the real estate transaction is structured fairly and the interests of the buyer and the seller are equally represented. For example, the agent would have to negotiate the specifics of the sale, like the closing date and purchase price, in a manner that takes into consideration the best interests of both the buyer and the seller. The agent also has the responsibility of informing each party of all relevant information pertaining to the property that will be of importance to the transaction. As for the state of Hawaii, dual agency is legal, provided that the broker informs the buyer and the seller of the dual agency status at the time of first contact and then obtain their consent to continue the transaction. This consent must be in written form in order for the dual agency to be considered legitimate. Failure to do so constitutes a breach of the fiduciary relationship and could result in legal action against the agent and the brokerage firm.

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What is a dual agency in a real estate transaction?

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