What is Dual Agency?

Dual Agency

Dual Agency arises when one intermediary represents both parties in the same transaction—most commonly, a buyer and a seller, or two stakeholders with potentially opposing interests. It requires careful handling to avoid conflicts of interest, as each side expects fair treatment and balanced counsel. Typically, special disclosures or consent forms clarify the agent’s role and limit how certain confidential details are shared.

Key Points:

• Conflict Risks: The agent must not compromise either side’s bargaining position.
• Consent & Transparency: All parties acknowledge the arrangement, ensuring no hidden partiality.
• Negotiation Boundaries: Advice on pricing or contract terms may be restricted to preserve neutrality.
• Regulatory Stances: Some jurisdictions heavily regulate or even discourage this model.

While convenient for consolidating communications, dual agency demands heightened ethical care to maintain trust without tilting benefits unfairly to one participant.