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Dual agent \u2013 A real estate agent may act as a double agent representing both the buyer and the seller in a real estate transaction but only with both parties' express consent. A dual agent shall be neutral concerning any conflicting interests of the seller and buyer.
The biggest problem with dual agency is this: a dual agent cannot \u2014 by definition and sometimes by state law \u2014 represent your best interests. The person is more of a referee than an agent. For example: if you're a buyer, you may want your agent to advise you on what price to offer for a home.
Is dual agency ethical? Dual agency is illegal in every fiduciary profession other than real estate (state laws allowing) because of the risks it creates. Therefore many folks outside and within the real estate industry view it as unethical.
Advance consent to dual agency means written informed consent signed by the seller/landlord or buyer/tenant that the listing agent and/or buyer's agent may act as a dual agent for that seller/landlord and a buyer/tenant for residential real property which is the subject of a listing agreement.
Dual agency is illegal in every fiduciary profession other than real estate (state laws allowing) because of the risks it creates. Therefore many folks outside and within the real estate industry view it as unethical.
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People also ask

Yes, that's allowed. The situation you're referring to is called transaction brokerage. Transaction brokerage is a service option when your real estate professional represents a buyer client interested in purchasing the property in which you are the seller client.
Yes, that's allowed. The situation you're referring to is called transaction brokerage. Transaction brokerage is a service option when your real estate professional represents a buyer client interested in purchasing the property in which you are the seller client.
The seller typically pays both agents' commissions, so the seller is the one who can directly save money in this situation. But when the seller's costs are lower, they may be willing to accept a lower price from the buyer. The seller, buyer and agent could all benefit from the arrangement.
In a dual agency situation, the buyer and seller work with a single agent representing them both, instead of separate agents. Dual agency commonly occurs when the buyer and seller use the same brokerage.
Dual agency occurs when a real estate agent works on behalf of both the home buyer and seller. In most real estate transactions, it is much more common to have separate agents represent each party, as this helps avoid the conflict of interest that can happen when an agent negotiates for both sides.

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