What is a dual agency in a real estate transaction?

Dual agency in real estate transactions is when one real estate agent or broker represents both the buyer and seller in a transaction. A real estate agent must act in the best interest of all parties involved and must disclose the dual representation to both parties. In the state of Virginia, the licensee must provide written disclosure to both parties of their dual agent representation. The disclosure must indicate that the licensee cannot provide exclusive representation to either party. Furthermore, real estate agents cannot provide confidential information to either party, such as financial, tax, legal, or other professional advice. In a dual agency, the real estate agent is bound by fiduciary responsibility to both entities and must inform both parties of any material information that may affect their decision to enter into the agreement. The agent must also take the same actions for both parties in order to maintain fairness. Finally, it is important to be aware that any dual agency agreement must be voluntary and only entered into after full disclosure. If either party has knowledge of a conflict of interest, they have the right to end the dual agency agreement and seek representation from a different broker.

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