Dual Agent
Definition and meaning of Dual Agent in real estate.
Dual agent is a licensed real estate professional who represents both the buyer and the seller in the same transaction. This role requires the agent to remain neutral and refrain from advocating for either client over the other.
In more detail
Working with a dual agent limits the level of representation a consumer receives, as the agent cannot suggest negotiating strategies or reveal confidential motivations. For example, the agent cannot advise the buyer to offer less or tell the seller to accept a lower price. State laws regulate this practice, and agents must obtain written permission before acting in this capacity. If consumers prefer dedicated advocacy, they should hire their own buyer's or seller's agent.
Key facts
| Category | Buying & Selling |
|---|---|
| Primary Duty | Neutrality and fair treatment to both parties |
| Limitation | Cannot provide strategic negotiation advice to either side |
| Alternative | Hiring separate buyer and seller agents |
An agent represents a home seller and also assists an unrepresented buyer with preparing the purchase contract, serving as a neutral coordinator for the deal.
Frequently asked questions
Can a dual agent help me negotiate the purchase price?
No, a dual agent must remain neutral and cannot advise either party on how to negotiate or suggest pricing strategies.
What happens if a dual agent fails to disclose their status?
Failure to disclose dual agency is illegal in most states, and can lead to the loss of real estate licenses, fines, and voided transaction contracts.