Knowledge Focus: Dual Agency
Dual Agency
Dual agency is a special broker situation in which an agent represents both the seller and the buyer in the same transaction, or when agents both work for the same real estate firm, even if they are in cities. In this situation, fiduciary duties are owed to both sides of the transaction. Primarily this involves the real estate professional's obligation to keep confidential the motives for buying or selling and other information obtained through the agency relationship with each client. By law, this is not legal without the informed consent of the buyer and seller. This may limit the range of duties the real estate professional may perform for either party. Buyers or sellers should carefully consider the possible consequences of the dual agency relationship before agreeing to such representation.
