Ever wonder what it would be like to represent a buyer and a seller in a transaction? Well, dual agency is just that. Dual agency is when one real estate agent represents both the buyer and seller in a transaction.
While it may seem ideal from an agent’s perspective, it can lead to some significant risks, which is why it is illegal in eight states. In most states, though, dual agency is legal, but state laws have measures in place to protect parties that use it.
This article is the ultimate guide on dual agency. Within it, we will discuss whether or not dual agency is legal in your state and whether or not it’s worth the risk.
What is Dual Agency?
Definition: Dual agency occurs when one real estate agent represents both the buyer and seller in a transaction. A dual agent can not disclose confidential information to either party and must be neutral toward both parties. In most states where dual agency is legal, written consent is almost always required.
The general term agency refers to the relationship an agent has with a buyer or seller (or, in our case, both parties).
It’s also worth noting in some states; dual agency refers to two agents working for the same company, each representing a buyer and seller (sometimes referred to as a designated agency).
What are the Advantages and Disadvantages of Dual Agency?
There are both pros and cons to a dual agency for all parties. Here are the advantages and disadvantages of dual agency:
Advantages
Faster Process
Dual agency streamlines the home-buying process. It’s simple math. It’s much easier to coordinate a transaction with three people than four. That’s 25% less hassle in scheduling meetings, times, closing, and more. A dual agency can save tons of time.
Commission and Fees
Commission is probably the most significant advantage of dual agency. Not only do agents get the whole buyer and seller fee, but most agents acting as a dual agent cut the price for both parties, meaning dual agency can be great for everyone (financially speaking).
Disadvantages
Neutrality
It can be tough for agents to remain neutral while acting as a dual agent. Think about it; sellers want to land at a high price, while buyers want to land on the lowest one possible. Remember, the higher the sales price, the more commission an agent earns, which creates an apparent conflict of interest.
Communication
While the process may be faster, specific advice and communication have to be limited. For example, a seller can’t ask an agent for listing price advice because the agent can’t take sides in that matter. This can create confusion for all parties.
So is Dual Agency a Good Idea?
If you look elsewhere, some articles suggest dual agency is bad, and others say dual agency is good. So which one is it? Well, I think it’s fair to say dual agency is okay under certain circumstances. While it can represent a risk for all parties, overall, it can save time and money.
Is Dual Agency Legal in my State?
Dual agency law varies from state to state, so it’s important to read and understand the laws for your state. Some states do not specifically define their stance on agency laws, while others do, so keep that in mind when you are reading down below. Here are all 50 states and their dual agency laws:
Alabama Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Limited Consensual Dual Agent
“Limited consensual dual agency is an agency relationship where the real estate brokerage company represents both the buyer and the seller in the same real estate transaction.” Per Alabama Real Estate Commission Rule 790-X-3-.13.
Dual Agent
“When one licensee represents both the buyer and seller in the same sales transaction.” Per Alabama Real Estate Commission Rule 790-X-3-.13.
Information: Alabama Real Estate Commission Official Website
Alaska Dual Agency Law
Legal or Illegal?
Illegal.
Information: Alaska Real Estate Commission Official Website
Arizona Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Arizona Real Estate Commission Official Website
Arkansas Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Arkansas Real Estate Commission Official Website
California Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
“Dual agent” means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction. Per California Real Estate Law, Subdivided Lands Law, and Vacation Ownership and Time-Share Act 10018.11.
Information: California Real Estate Commission Official Website
Colorado Dual Agency Law
Legal or Illegal?
Illegal. In 2003, Colorado eliminated dual-agency. Per Colorado Revised Statutes Title 12 – Professions and Occupations General – Continued Article 61 – Real Estate Part 8 – Brokerage Relationships 12-61-806.
Information: Colorado Real Estate Agency Official Website
Connecticut Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
“Dual agent” means a real estate broker or real estate salesman who acts in a fiduciary capacity for both the prospective seller or prospective lessor and the prospective buyer or prospective lessee in a real estate transaction. Per Real Estate Laws and Regulations Concerning the Conduct of Appraisers, Brokers and Salespersons Sec. 20-325d-1.
Information: Connecticut Department of Consumer Protection and the Connecticut Real Estate Commission Official Website
Delaware Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
“Dual agent” means a salesperson, associate broker, broker and/or brokerage organization which represents both buyer and seller or tenant and landlord as clients in a real estate services transaction. Per Delaware Real Estate Services, Brokers, Associate Brokers and Salespersons Subchapter I. General Provisions.
Information: Delaware Real Estate Commission Official Website
Florida Dual Agency Law
Legal or Illegal?
Illegal.
Information: Florida Department of Real Estate Official Website
Georgia Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller. Per O.C.G.A. Section 10-6A-12.
Information: Georgia Real Estate Commission Official Website
Hawaii Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Hawaii Real Estate Department Official Website
Idaho Dual Agency Law
Legal or Illegal?
Legal.
Limited Dual Agent or Assigned Agent
A brokerage may represent both the buyer and the seller in the same transaction only as a limited dual agent and only with the express written consent of all other clients involved in the transaction. Per Chapter 20 Idaho Real Estate License Law.
Information: Idaho Real Estate Commission Official Website
Illinois Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
An individual licensee may act as a dual agent, or a sponsoring broker may permit one or more of its sponsored licensees to act as dual agents in the same transaction only with the informed written consent of all clients. Per Illinois Compiled Statutes.
Information: Illinois Real Estate Division Official Website
Indiana Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Indiana Real Estate Commission Official Website
Iowa Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Disclosed Dual Agent
A brokerage which has a company policy that permits disclosed dual agency for in-house
transactions shall provide a disclosed dual agency consent agreement to the client or prospective client
prior to engaging in any activities of a dual agent. Per Iowa Administrative Code.
Information: Iowa Real Estate Bureau Official Website
Kansas Dual Agency Law
Legal or Illegal?
Illegal.
Information: Kansas Real Estate Commission Official Website
Kentucky Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
Kentucky law permits a real estate agent and brokerage to represent both the Seller and Buyer in a real estate transaction as long as this is disclosed to both parties and they both agree. Per Kentucky Agency Disclosure Statement.
Designated Agent
If both seller and buyer consent, the broker responsible for a real estate office may designate agents to represent the seller and the buyer to the exclusion of all other agents associated with his office. The buyer will become the client of the agent designated to represent him and the seller will become the client of the agent designated to represent him. Designated agency allows two licensees in the same firm to represent different parties to a real estate transaction. Per Kentucky Agency Disclosure Statement.
Information: Kentucky Real Estate Commission Official Website
Louisiana Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agency
“Dual agency” means an agency relationship in which a licensee is working with both buyer and seller or both landlord and tenant in the same transaction. However, such a relationship shall not constitute dual agency if the licensee is the seller of property that he owns or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent. A dual agency relationship shall not be construed to exist in a circumstance in which the licensee is working with both landlord and tenant as to a lease which does not exceed a term of three years and the licensee is the landlord. Per Louisiana Law of Agency.
Information: Louisiana Real Estate Commission Official Website
Maine Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Disclosed Dual Agent
A real estate brokerage agency may act as a disclosed dual agent only with the informed written consent of all parties. Per Maine Chapter 114: Real Estate Brokerage License Act.
Information: Maine Real Estate Commission Official Website
Maryland Dual Agency Law
Legal or Illegal?
Illegal.
Information: Maryland Real Estate Commission Official Website
Massachusetts Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agency
When an agent or a real estate firm, practicing traditional agency as a business model, represents both principals (Buyer and Seller) in the same transaction, a dual agency exists. In Massachusetts Disclosed Dual Agency is legal, provided there exists full disclosure and written informed consent to the dual agency by both the Buyer and the Seller in a specific transaction. A Dual Agent has a duty of confidentiality and accounting to both parties. Reasonable Care and Skill will apply in the real estate transaction. Per Massachusetts RE49R05: Dual Agency
Information: Massachusetts ePLACE Portal Real Estate Official Website
Michigan Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Michigan Real Estate Department Official Website
Minnesota Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agency
Dual agency occurs when one broker or salesperson represents both parties to a transaction, or when two salespersons licensed to the same broker each represent a party to the transaction. Dual agency requires the informed consent of all parties, and means that the broker and salesperson owe the same duties to the Seller and the Buyer. Per Minnesota Statutes.
Information: Minnesota Real Estate License Department Official Website
Mississippi Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Disclosed Dual Agent
A disclosed dual agent is a licensee who, with the informed written consent of Seller and Buyer, is engaged as an agent for both Seller and buyer. Per The Mississippi Real Estate Commission Dual Agency Form.
Information: Mississippi Real Estate Commission Official Website
Missouri Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent (Limited)
A licensee may act as a dual agent only with the consent of all parties to the transaction. Consent shall be presumed by a written agreement pursuant to section 339.780. Per Missouri Laws 339.750.
Information: Missouri Real Estate Commission Official Website
Montana Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Montana Real Estate Commission Official Website
Nebraska Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
A licensee may act as a dual agent only with the informed consent of all parties to the transaction. The informed consent shall be evidenced by a written agreement pursuant to section 76-2422. Per Nebraska Revised Statute 76-2419.
Further Information: Nebraska Real Estate Commission Official Website
Nevada Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Multiple Representation
Requires that the representation of more than one party in a real estate transaction may only be undertaken upon licensee’s full disclosure to each party that he/she is acting for more than one party in that transaction and with each party’s subsequent consent to the multiple representation in writing. The term “dual agency” is not used anywhere in NRS 645. Per Nevada Commission Statement of Concerns.
Information: Nevada Real Estate Commission Official Website
New Hampshire Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Disclosed Dual Agent
A disclosed dual agent is a licensee acting for both the seller/landlord and the buyer/tenant in the same transaction with the knowledge and written consent of all parties. Per New Hampshire Consumer Information Guide.
Facilitator
A facilitator is an individual licensee who assists one or more parties during all or a portion of a real estate transaction without being an agent or advocate for the interests of any party to such transaction. Per New Hampshire Consumer Information Guide.
Information: New Hampshire Estate Commission Official Website
New Jersey Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Disclosed Dual Agent
A disclosed dual agent works for both the buyer and seller. To work as a dual agent, a firm must first obtain the informed written consent of the buyer and the seller. Per Consumer Information Statement on New Jersey Real Estate Relationships.
Transaction Broker
A transaction broker works with a buyer or a seller or both in the sales transaction without representing anyone. A transaction broker does not promote the interests of one party over those of the other party to the transaction. Per Consumer Information Statement on New Jersey Real Estate Relationships.
Information: New Jersey Estate Commission Official Website
New Mexico Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agency
Occurs when:
(1) an associate broker or qualifying broker is agent for both a seller client and a buyer client in the same transaction;
(2) an associate broker is agent for either a seller client or a buyer client, and the agent’s qualifying broker is agent for the other client in the transaction; and,
(3) in a transaction where a buyer client and a seller client are each served by different associate brokers in an agency relationship supervised by the same qualifying broker, and the qualifying broker does not choose the designated agency option, both the associate brokers and the qualifying broker are dual agents in the transaction.
Per New Mexico Broker Duties And Brokerage Relationships.
Information: New Mexico Estate Commission Official Website
New York Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
A real estate broker may represent both the buyer and seller if both the buyer and seller give their informed consent in writing. In such a dual agency situation, the agent
will not be able to provide the full range of fiduciary duties to the buyer and seller. Per New York State Disclosure Form for Buyer and Seller.
Information: New York Division of License Services Official Website
North Carolina Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller. Per North Carolina Real Estate License Law and Real Estate Commission Rules.
Further Information: North Carolina Real Estate Commission Official Website
North Dakota Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agency
A situation in which a real estate brokerage firm or the real estate brokerage firm’s licensees owe a duty to more than one party in a real estate transaction. Dual agency is established only as follows:
a. When one licensee represents both the buyer and the seller in a real estate transaction; or
b. When two or more licensees, licensed to the same broker, each represents a party to the real estate transaction.
Per North Dakota Real Estate Code 43-23-06.1.
Information: North Dakota Real Estate Commission Official Website
Ohio License Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Ohio law permits a real estate agent and brokerage to represent both the seller and buyer in a real estate transaction as long as this is disclosed to both parties and they both agree. Per Ohio Agency Disclosure Statement.
Information: Ohio Department of Real Estate Official Website
Oklahoma Dual Agency Law
Legal or Illegal?
Illegal.
Information: Oklahoma Real Estate Commission Official Website
Oregon Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Disclosed Limited Agency
“Disclosed limited agency” means a real property transaction in which the representation of a buyer and seller or the representation of two or more buyers occurs within the same real estate business. Per Oregon Revised Statutes.
Information: Oregon Real Estate Commission Official Website
Pennsylvania Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
“Dual agent” A licensee who acts as an agent for the buyer and seller or lessee and landlord in the same transaction. Per Pennsylvania Real Estate Licensing And Registration Act.
Information: Pennsylvania Real Estate Commission Official Website
Rhode Island Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Rhode Island Real Estate Commission Official Website
South Carolina Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agency
“Dual agency” means a form of agency in which a real estate brokerage firm with two clients in the same transaction gives limited agency services. Per South Carolina Code of Laws.
Designated Agency
“Designated agency” means a form of agency in which two clients represented by a real estate brokerage firm in the same transaction may be given almost equivalent treatment as a single agency. Per South Carolina Code of Laws.
Information: South Carolina Real Estate Commission Official Website
South Dakota Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: South Dakota Real Estate Commission Official Website
Tennessee Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Dual Agent
Refers to a situation in which the licensee has agreements to provide services as an agent to more than one (1) party in a specific transaction and in which the interests of the parties are adverse. Per Tennessee Real Estate Code.
Information: Tennessee Department of Commerce and Real Estate Official Website
Texas Dual Agency Law
Legal or Illegal?
Illegal. A license holder may not represent both principals as a dual agent under the revisions to TRELA. Per Texas Real Estate Commission.
Information: Texas Real Estate Commission Official Website
Utah Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Utah Division of Real Estate Official Website
Vermont Dual Agency Law
Legal or Illegal?
Illegal.
Information: Vermont Real Estate Official Website
Virginia Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Virginia Real Estate Board Official Website
Washington Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller. Duties listed on Washington State Legislature.
Information: Washington Real Estate License Department Official Website
West Virginia Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller. Per West Virginia Real Estate License Act And Legislative Rules.
Information: West Virginia Real Estate Commission Official Website
Wisconsin Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Designated Agency
“Designated agency” means a multiple representation relationship in which each client of the firm in the multiple representation relationship receives negotiation services from the firm only from licensees associated with the firm who are not providing negotiation services to any other client of the firm in the transaction. Per Wisconsin Real Estate Practice Law.
Information: Wisconsin Department Professional Services and Real Estate Official Website
Wyoming Dual Agency Law
Legal or Illegal?
Legal with the written consent from both the buyer and the seller.
Information: Wyoming Real Estate Commission Official Website
