What Is Dual Agency?
A situation where a real estate agent represents both the buyer and seller in the same transaction. This creates potential conflicts of interest and must be disclosed to all parties, as the agent cannot fully advocate for either side's best interests simultaneously.
Dual Agency across 8 exams
Dual Agency appears on the following exams. Each defines it in the context candidates are tested on:
- Real Estate
- A situation where a real estate agent represents both the buyer and seller in the same transaction. This creates potential conflicts of interest and must be disclosed to all parties, as the agent cannot fully advocate for either side's best interests simultaneously.
- CA Salesperson
- A situation where one real estate agent represents both the buyer and the seller in the same transaction. California law permits dual agency only with informed written consent from both parties, and agents must disclose the potential conflicts of interest and their limitations in representing each party equally.
- TX Sales Agent
- Representation of both the buyer and seller in the same transaction by the same agent or brokerage. Texas law permits dual agency only with informed written consent from both parties. Agents must disclose all material facts to both clients while managing the conflict of interest. This creates heightened liability and is a frequent exam question topic.
- TX Broker
- When a broker or agent represents both the buyer and seller in the same transaction. In Texas, dual agency is permitted only with informed written consent from both parties, and the agent must treat both clients fairly and disclose any conflicts of interest.
- CA Broker
- A situation where a single broker represents both the buyer and seller in the same transaction. California law permits dual agency only with written informed consent from both parties, and the broker must act fairly to both.
- FL Broker
- A situation where one broker or agent represents both the buyer and seller in the same transaction. This creates a potential conflict of interest and must be disclosed to and agreed upon by both parties in writing under Florida law.
- NC Broker
- A situation where one firm represents both the buyer and seller in the same transaction; in NC it is permitted only with the informed written consent of both parties.
- IL Broker
- An arrangement in which a single broker or brokerage represents both the buyer and the seller in the same transaction. Because loyalties are divided, it generally requires the informed written consent of both parties.