Last Updated: January 2026

When buying or selling a home, you expect your real estate agent to represent your best interests. But what happens when the same agent-or the same brokerage-represents both the buyer and the seller in a single transaction? This arrangement is called dual agency, and it's one of the most controversial practices in the real estate industry.

Understanding what you need to know about dual agency is essential for anyone entering the real estate market. When there's only one agent handling both sides of a transaction-acting as both the seller's agent and the buyer's agent-the dynamics change dramatically. In this comprehensive guide, we'll explain what "dual agency" means in states where it's legal, how it works, the potential risks and benefits, and how to protect yourself whether you're buying or selling a home.

What Is Dual Agency?

Dual agency occurs when a single real estate agent represents both the buyer and the seller in the same real estate transaction. In this agency relationship, one agent may represent both parties instead of having separate agents advocate for each party's interests. A dual agent may facilitate the entire deal while acting as a dual agent for the seller and buyer simultaneously.

There are two main forms of dual agency:

• Single-agent dual agency: One real estate agent represents both the buyer and seller, where the agent represents both parties personally
• Designated agency (in-house transaction): Two different designated agents from the same brokerage, where each agent representing their client separately, but the brokerage as a whole acts as a dual agent

In a typical real estate transaction, the listing agent works exclusively for the seller, while the buyer's agent represents the home buyer's interests. Each agent has a fiduciary duty to their respective client, meaning they must negotiate the best possible terms for their side. When a real estate agent represents both parties, this agency relationship fundamentally changes-a scenario the National Association of REALTORS® has specific guidelines about.

How Does Dual Agency Work?

When a real estate agent's client decides to work with them on both sides of a transaction, they may represent both the buyer and the seller. A dual agency situation typically arises when:

1. A buyer contacts a listing agent directly about a property they're listing
2. A buyer working with an agent discovers a property listed by that same agent
3. Two agents at the same brokerage have clients on opposite sides of a transaction

When dual agency occurs, the agent must inform both the buyer and seller in a transaction and obtain written consent before proceeding. The law of agency requires the agent to act fairly toward both sides. The agent then transitions from being an advocate for one party to being a neutral facilitator for both. This means the dual agent cannot:

• Advise either party on what price to offer or accept
• Share confidential information from one party with the other
• Negotiate aggressively on behalf of either side
• Recommend terms that favor one party over another

Is Dual Agency Legal?

Dual agency legality varies significantly by state-understanding where it's legal is crucial for any home buyer or seller. In states where it's legal, dual agency requires proper disclosure and consent. As of 2026, here's how states handle dual agency:

States Where Dual Agency Is Illegal

Several states have banned dual agency entirely due to the inherent conflict of interest. In states where it's illegal, consumers must work with another agent if they want representation-they cannot agree to dual agency arrangements even if they wanted to. Understanding the different types of agency relationships helps you know what to expect.

• Alaska: Prohibits single-agent dual agency
• Colorado: Uses "transaction broker" model instead
• Florida: Requires transaction broker status in dual situations
• Kansas: Banned in 2018
• Maryland: Prohibits undisclosed dual agency
• Oklahoma: Requires written consent and limits agent duties
• Texas: Uses "intermediary" model with strict limitations
• Vermont: Requires "limited agent" status
• Wyoming: Prohibits conflicting fiduciary duties

In states where dual agency is prohibited, agents typically operate as transaction brokers or facilitators who help both parties complete the transaction without representing either side exclusively.

Dual Agency Pros and Cons

Whether dual agency benefits or harms buyers and sellers depends on the specific situation. When the seller's agent and the buyer's agent are the same person, or when there's only one agent handling both sides, here are the potential advantages and disadvantages:

Potential Benefits of Dual Agency

• Streamlined communication: With one agent handling both sides, information flows more quickly and scheduling is easier
• Faster transactions: Fewer parties involved can mean quicker decisions and shorter closing timelines
• Potential commission savings: Some dual agents reduce their commission since they're earning from both sides
• Single point of contact: Less confusion about who to call with questions or concerns
• Market knowledge: The listing agent typically has deep knowledge of the property

Risks and Drawbacks of Dual Agency

• Conflict of interest: The agent cannot fully advocate for either party when representing both
• Limited negotiation: A dual agent cannot advise on pricing strategy or help you negotiate the best price for your deal
• Information asymmetry: The agent knows both parties' motivations, budgets, and deadlines-information they cannot share
• Reduced fiduciary duty: The agent's obligation to act in your best interest is significantly diminished
• Potential bias: Even well-intentioned agents may unconsciously favor one party (often the seller, who is their original client), which can affect the final sale price
• Less accountability: Without separate representation, mistakes or oversights may go unchallenged

Dual Agency vs. Designated Agency

Many real estate brokerages use designated agency (also called assigned agency) as an alternative to traditional dual agency. Understanding how agents work within these different types of agency structures helps you make informed decisions. When dual agency arises, here's how it differs from designated agency:

While designated agency offers better protection than agents acting as dual agents in single-agent situations, it's not perfect. The supervising broker still has access to information from both sides, and the seller's agent and the buyer's agent at the same office may share information inadvertently. When the same person serves as the agent and the buyer's agent simultaneously, conflicts are inherent.

How to Protect Yourself in a Dual Agency Situation

If you find yourself in a potential dual agency situation in states where it's legal, here's how to protect your interests as a buyer's agent or seller's agent client:

For Buyers

1. Get your own buyer's agent first: Before viewing properties, work with an agent who will represent only you. Learn how to find a real estate agent →
2. Ask about representation upfront: When contacting a listing agent, clarify that you want separate representation
3. Request designated agency: If the listing is at a brokerage you like, ask for a different agent from that office
4. Hire a real estate attorney: In states where dual agency is common, an attorney can protect your interests
5. Get a home inspection: Never skip the inspection just because your agent is also the listing agent
6. Research comparable sales: Do your own pricing research since the agent cannot advise you

For Sellers

1. Discuss dual agency policies in advance: When hiring a listing agent, ask how they handle buyer inquiries
2. Set clear expectations in the listing agreement: Specify whether you consent to dual agency
3. Require disclosure: Insist on written notification before any dual agency situation
4. Consider commission reduction: If dual agency occurs, negotiate a lower commission since the agent earns from both sides
5. Get independent advice: Consult a real estate attorney before accepting offers in dual agency situations

Dual Agency Disclosure Requirements

In states where dual agency is permitted, agents must provide written disclosure as part of dual agency agreements and obtain consent from both parties. This agency may only proceed with proper documentation. The disclosure typically includes:

• Explanation of dual agency and what it means for representation
• Statement of the agent's limited duties in dual agency
• Acknowledgment that the agent cannot advocate for either party exclusively
• Consent signature from both buyer and seller

This disclosure must happen before substantive negotiations begin-not after an offer has been made. If an agent fails to disclose dual agency properly, the transaction may be voidable, and the agent could face disciplinary action.

What to Look For in Dual Agency Disclosure

When reviewing a dual agency disclosure, pay attention to:

• Timing: You should receive disclosure before making or accepting any offers
• Clarity: The form should clearly explain what you're giving up by consenting
• No pressure: You should never feel pressured to sign; you have the right to seek separate representation
• Revocability: Understand whether you can withdraw consent later

When Dual Agency Might Make Sense

While we generally advise against dual agency, there are limited situations where a dual agency transaction may be acceptable. In states where dual agency is allowed, here are scenarios where it might work:

• Family transactions: When buying from or selling to relatives where price isn't contentious
• Repeat transactions: If you've worked with the same agent multiple times and trust them completely
• Low-stakes deals: Investment properties where both parties are experienced and just need paperwork handled
• No alternatives available: In very small markets where finding separate representation is impractical

Even in these situations, consider having a real estate attorney review documents and advise on terms.

Questions to Ask About Dual Agency

Before entering any real estate transaction, ask your agent these questions:

1. What is your brokerage's policy on dual agency?
2. Will you represent me exclusively, or could dual agency arise?
3. If dual agency occurs, how will you handle it?
4. Do you offer designated agency as an alternative?
5. Will the commission be reduced in a dual agency situation?
6. Can I opt out of dual agency in our agreement?

A good agent will answer these questions honestly and respect your preference to avoid dual agency if that's your choice.

The Future of Dual Agency

Several factors are shaping the future of dual agency in real estate:

• NAR settlement changes: The 2024 National Association of Realtors settlement has changed how commissions work, potentially affecting dual agency economics
• Increased regulation: More states are considering banning or restricting dual agency
• Consumer awareness: Homebuyers and sellers are increasingly educated about the risks of dual agency
• Technology changes: Online platforms that connect buyers directly with sellers may reduce dual agency situations

Many real estate professionals believe dual agency will become less common as consumers demand better representation and states implement stricter regulations.

Dual Agency FAQs

What is dual agency in real estate?

Dual agency occurs when one real estate agent's brokerage represents both the buyer and seller in the same transaction. In a "dual agency" arrangement, the agent becomes a neutral facilitator rather than an advocate for either party, which creates an inherent conflict of interest. There's only one agent involved rather than a separate buyer's agent and seller's agent.

Is dual agency bad for buyers?

Dual agency is generally disadvantageous for buyers because the agent cannot help negotiate the lowest price or advocate for buyer-favorable terms. The buyer loses the benefit of having someone in their corner during what is often the largest purchase of their life.

Is dual agency bad for sellers?

Dual agency can also harm sellers. While the listing agent already knows the property, they cannot advise the seller on whether to accept an offer or how to negotiate better terms. Some studies suggest dual agency properties sell for slightly less than those with separate representation.

Can I refuse dual agency?

Yes, you can refuse "dual agency" arrangements. If a dual agency situation arises, you have the right to seek separate representation from another real estate agent's brokerage. In most states, you must give written consent for dual agency to proceed, so simply decline to sign the consent form and request your own agent and the buyer's agent to be different people.

What states ban dual agency?

As of 2026, Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, Vermont, and Wyoming have banned or significantly restricted dual agency. Check your state's specific laws, as regulations vary and may change.

What is the difference between dual agency and designated agency?

In dual agency, one agent represents both parties. In designated agency, two different agents from the same brokerage represent the buyer and seller separately. Designated agency provides better client representation, though the brokerage still has access to information from both sides.

Do dual agents earn double commission?

In a dual agency situation, the agent (or their brokerage) typically keeps the entire commission rather than splitting it with a cooperating agent. This creates a financial incentive to encourage dual agency, which is why some critics argue the practice primarily benefits agents rather than clients.

The Bottom Line

Dual agency is a controversial practice that significantly limits the representation you receive as a buyer or seller. While it's legal in most states with proper disclosure, the inherent conflict of interest means neither party gets a true advocate.

Key takeaways:

• Dual agency occurs when one agent or brokerage represents both buyer and seller
• The agent becomes a neutral facilitator and cannot advocate for either party
• Nine states have banned or heavily restricted dual agency
• You always have the right to refuse dual agency and seek separate representation
• The best protection is to establish your own agent relationship before shopping for homes

For most buyers and sellers, the safest approach is to work with an agent who represents only your interests. The small potential benefits of dual agency rarely outweigh the loss of dedicated advocacy during one of life's most significant financial transactions.