What is a dual agency in a real estate transaction?

In North Carolina, a dual agency in a real estate transaction is when a real estate brokerage firm has two agents who represent different parties in a transaction. For example, one agent may be a buyer’s agent and the other may be a seller’s agent. This type of dual representation is called dual agency. In order for a dual agency to be valid in North Carolina, the brokerage firm must inform both parties of the dual representation prior to entering into the transaction. Both parties must then agree to the arrangement and sign a document acknowledging the dual agency. The purpose of dual agency is to provide both parties with an experienced representative who is familiar with the local real estate market. The dual agent will handle the negotiations of the transaction and ensure that the terms of the agreement are fair to both parties. However, dual agents are prohibited from offering any type of advice to either party. In addition, dual agents must keep confidential any information or negotiations of the transaction. Dual agency is an important part of residential real estate law in North Carolina and it serves to protect both parties involved in the transaction. By having two agents representing both parties, it allows for a more efficient and fair transaction.

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