What is a dual agency in a real estate transaction?

A dual agency, most commonly referred to in a real estate transaction as Dual Agency, is when one real estate broker or salesperson represents both the buyer and seller in a real estate transaction. In the State of Iowa, real estate brokers and real estate salespersons are obligated to treat all parties fairly and with full disclosure. This means that the broker or salesperson cannot advise either party in the transaction or give them any special advantages or benefits. They may not favor one party over another, or make any representations that are intended to mislead or deceive either party. In addition, the broker or salesperson must disclose all material facts, including any potential conflicts of interest, regarding the transaction. Dual Agency relationships in Iowa are regulated primarily by Iowa Code Section 537.721, which requires the broker or salesperson to obtain both parties’ written consent prior to entering into a dual agency relationship. Once consent is obtained, the broker or salesperson must treat each party fairly and disclose to both parties their agency relationship. The Iowa Real Estate Commission is the regulatory body that enforces the rules and regulations governing Dual Agency relationships in Iowa. Iowa real estate agents are required to comply with the Commission’s rules and regulations to ensure that both parties’ interests are fully represented during the real estate transaction.

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What is a dual agency in a real estate transaction?

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