{"id":72870,"date":"2025-09-29T18:17:38","date_gmt":"2025-09-30T01:17:38","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=72870"},"modified":"2025-10-17T09:48:51","modified_gmt":"2025-10-17T16:48:51","slug":"what-is-dual-agency","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/what-is-dual-agency\/","title":{"rendered":"What Is Dual Agency? How It Works and What to Watch Out For"},"content":{"rendered":"<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>What it is:<\/b><span style=\"font-weight: 400;\"> Dual agency means one agent or brokerage represents both buyer and seller in the same deal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Why it matters:<\/b><span style=\"font-weight: 400;\"> It can streamline communication but limits how much either side is represented.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>State laws:<\/b><span style=\"font-weight: 400;\"> Vary across the U.S. &#8211; banned in eight states, allowed elsewhere with written disclosure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Who it\u2019s for:<\/b><span style=\"font-weight: 400;\"> Best for experienced buyers and sellers who understand the tradeoffs.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In most real estate deals, whether you\u2019re buying a<\/span><a href=\"https:\/\/www.redfin.com\/city\/30749\/NY\/New-York\/condos\" data-wpel-link=\"exclude\"> <span style=\"font-weight: 400;\">condo in New York City<\/span><\/a><span style=\"font-weight: 400;\"> or a<\/span><a href=\"https:\/\/www.redfin.com\/city\/29470\/IL\/Chicago\" data-wpel-link=\"exclude\"> <span style=\"font-weight: 400;\">house in Chicago<\/span><\/a><span style=\"font-weight: 400;\">, the buyer and seller each have their own agent. But sometimes, one real estate agent represents both sides in what\u2019s known as dual agency in real estate. This setup can move things along quickly, but it also raises questions about whose interests come first.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-105779\" src=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-scaled.jpg\" alt=\"dual agent helping buyer\" width=\"1800\" height=\"1200\" srcset=\"https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-scaled.jpg 1800w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-300x200.jpg 300w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-1024x683.jpg 1024w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-768x512.jpg 768w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-1536x1024.jpg 1536w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-225x150.jpg 225w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-945x630.jpg 945w, https:\/\/www.redfin.com\/blog\/wp-content\/uploads\/2022\/05\/shutterstock_2512454345-450x300.jpg 450w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">What is dual agency?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Dual agency in real estate is when one real estate agent, or sometimes two agents from the same brokerage, represents both the buyer and seller in the same transaction. This arrangement &#8211; often called a dual agent setup &#8211; requires full disclosure and written consent from both parties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The challenge is that a dual agent can\u2019t fully advocate for one side without limiting their ability to represent the other. While dual agency agreements can simplify communication and speed up negotiations, they also raise concerns about fairness and potential conflicts of interest. Because of these concerns, dual agency laws differ across the country. Some states allow it under strict rules, while others ban dual agency entirely.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Dual agency laws by state: Where it\u2019s legal, restricted, or banned<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Banned states:<\/b><span style=\"font-weight: 400;\"> Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, Vermont<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Allowed with written disclosure:<\/b><span style=\"font-weight: 400;\"> California, Illinois, New York, and most other states<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Restricted or modified forms:<\/b><span style=\"font-weight: 400;\"> Some states, like North Carolina and Washington, use designated agency instead, where two agents from the same brokerage represent each side separately<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">How does a dual agency work?\u00a0<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">One agent for both sides<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Dual agency can occur when a buyer hires an agent who also represents the seller of the same property. This can happen if a buyer meets the listing agent at an open house and decides not to hire their own representative, or simply when one agent is already working with both parties. This is more common in smaller markets where there are fewer agents available.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Designated agency within one brokerage<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A variation of dual agency is known as designated agency. In this setup, two different agents from the same brokerage represent each side separately. While the brokerage is still involved on both ends, this structure is often seen as more balanced because each client has an agent committed to their interests.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Open house connection<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Another common scenario is when a buyer meets the listing agent at an open house and decides not to hire their own representative. With proper disclosure and consent, that same agent can represent both the buyer and the seller throughout the transaction.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Dual agency disclosure and consent<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In all of these situations, the dual role must be disclosed, and both parties are required to provide written consent. Once agreed upon, the agent, or brokerage, manages communication, offers, and negotiations while remaining neutral rather than advocating for just one side.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Neutrality in representation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The key feature of dual agency is that the agent must remain neutral. Instead of fully advocating for one party, the agent facilitates communication, manages paperwork, and guides the process without giving an advantage to either side. Because this neutrality limits how much guidance the agent can provide, it\u2019s one of the main reasons dual agency is controversial.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Dual agency pros and cons<\/span><\/h2>\n<h2><span style=\"font-weight: 400;\">Pros<\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Faster communication: <\/b><span style=\"font-weight: 400;\">Because one agent or brokerage is handling both sides, information flows more quickly. There\u2019s less chance of delays caused by back-and-forth between two separate agents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Streamlined process: <\/b><span style=\"font-weight: 400;\">With a single point of contact, scheduling showings, drafting paperwork, and moving the transaction forward can feel simpler for both buyer and seller.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Potential cost savings and commission negotiation:<\/b><span style=\"font-weight: 400;\"> In some cases, the<\/span><a href=\"https:\/\/www.redfin.com\/blog\/negotiating-real-estate-commissions\/\" data-wpel-link=\"exclude\"> <span style=\"font-weight: 400;\">commission may be negotiated<\/span><\/a><span style=\"font-weight: 400;\"> differently when only one agent is involved, which can reduce overall costs for one or both parties. Since the agent keeps the full commission, buyers and sellers can ask for a reduced rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Access to more buyers or listings:<\/b><span style=\"font-weight: 400;\"> When the same brokerage represents both sides, sellers gain access to a larger pool of potential buyers through the brokerage\u2019s network. Buyers may also get broader access to listings held within that same office.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Cons<\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Conflicts of interest:<\/b><span style=\"font-weight: 400;\"> A dual agent cannot strongly advocate for one side without compromising their role with the other. This lack of full representation is the main concern with dual agency.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Less individualized advice and limited guidance:<\/b><span style=\"font-weight: 400;\"> Since the agent must remain neutral, they may not be able to provide detailed guidance on negotiations, pricing strategies, or contract terms. Confidentiality rules also mean they cannot share sensitive information that might benefit one party.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk of confusion or mistrust:<\/b><span style=\"font-weight: 400;\"> If expectations aren\u2019t clearly explained upfront, buyers or sellers may feel uncertain about whether the agent is acting in their best interest.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of full advocacy:<\/b><span style=\"font-weight: 400;\"> One of the biggest drawbacks is losing an agent\u2019s undivided loyalty. In a dual agency arrangement, the agent cannot push for the very best deal for one side without disadvantaging the other<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Room for error:<\/b><span style=\"font-weight: 400;\"> With only one agent overseeing the transaction, there\u2019s a greater chance of missing details, overlooking documents, or making mistakes that a second agent might have caught.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Is working with a dual agent the right decision for you?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Dual agency can make a transaction feel quicker and more convenient, but it\u2019s not a decision to take lightly. Because the agent must remain neutral, buyers and sellers need to weigh the tradeoffs carefully before agreeing to this arrangement.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">For buyers<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Working with a dual agent may expand the number of homes you can easily view, especially if the brokerage has a wide network of listings. It can also simplify communication since the agent already works closely with the seller. However, buyers should remember that a dual agent earns the full commission and cannot provide tailored advice on how much to offer, what repairs to request, or how to negotiate for the best deal.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">For sellers<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Sellers may benefit from a more streamlined process and potentially faster sale. A dual agent can bring in buyers directly from their own brokerage, increasing exposure. On the downside, the agent also represents the buyer, which means they cannot push for the highest price or most favorable terms. For some sellers, this can limit profit or weaken their negotiating position.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">When to use a dual agent<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Dual agency may make sense in limited situations. If both parties already know each other and have agreed on terms, a dual agent can simply handle the paperwork. It can also work for seasoned investors or developers who are comfortable navigating negotiations without heavy guidance from an agent. In these cases, neutrality may not be a drawback, since both sides already know what they want.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">When to avoid dual agency<\/span><\/h3>\n<p><a href=\"https:\/\/www.redfin.com\/blog\/tips-for-first-time-homebuyers\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">First-time buyers<\/span><\/a><span style=\"font-weight: 400;\"> and sellers are often advised to steer clear of dual agency. Because the agent must remain neutral, they cannot answer<\/span><a href=\"https:\/\/www.redfin.com\/blog\/15_questions_to_ask_when_hiring_a_real_estate_agent\/\" data-wpel-link=\"exclude\"> <span style=\"font-weight: 400;\">important questions<\/span><\/a><span style=\"font-weight: 400;\"> such as \u201cHow much should I offer?\u201d or \u201cWhat repairs should I request?\u201d For those new to real estate, this lack of guidance can lead to confusion and frustration. If you want strong advocacy, detailed advice, and someone fully in your corner, an exclusive agent is usually the better choice.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The bottom line: Is dual agency good or bad?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Dual agency can make a real estate transaction faster and more convenient, but it comes with tradeoffs. It\u2019s often a good fit for experienced buyers and sellers who understand the process and can make informed decisions without full guidance. However, for first-time buyers or those who want strong advocacy, dual agency can be risky since the agent must stay neutral and cannot fully represent either side. Because state laws vary\u2014with some banning the practice entirely\u2014it\u2019s important to check local regulations, weigh the pros and cons, and decide whether the potential benefits outweigh the risks for your situation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Dual agency FAQs<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">1. What\u2019s the difference between dual agency and designated agency?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Dual agency is when one agent represents both the buyer and seller, staying neutral without fully advocating for either side. Designated agency, also called appointed agency, happens when two agents from the same brokerage represent each party separately.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Is dual agency legal in every state?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Dual agency is not legal in every state. It\u2019s banned in Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont. Other states allow it but have strict rules about disclosure and consent. Dual agency laws vary by state and can change over time. Always check your state\u2019s most recent regulations before proceeding..<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Who pays the commission with dual agency?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In many real estate transactions, the<\/span><a href=\"https:\/\/www.redfin.com\/blog\/who-pays-the-real-estate-agent\/\" data-wpel-link=\"exclude\"> <span style=\"font-weight: 400;\">seller pays the commission<\/span><\/a><span style=\"font-weight: 400;\">, which has traditionally been 5\u20136% of the sale price. However, commission structures can vary by market and are negotiable.\u00a0 Normally, the commission is split between the buyer\u2019s agent and the seller\u2019s agent. In a dual agency arrangement, however, the same agent represents both sides and keeps the full commission.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Can you negotiate a lower commission by using dual agency?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. Buyers and sellers can often negotiate commission rates in any transaction, but dual agency may provide more leverage. Since the agent would otherwise keep the full commission by representing both sides, it\u2019s reasonable to ask for a reduced rate. Advocating for yourself and discussing fees upfront can help ensure the arrangement benefits you as well as the agent.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn what dual agency is in real estate, how it works, and why it may create risks for buyers and sellers.<\/p>\n","protected":false},"author":585,"featured_media":105779,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34276],"tags":[36417,36418],"coauthors":[34682],"class_list":["post-72870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","tag-buy-side-agent","tag-sell-side-agent"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is Dual Agency? 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