Dual Agency

Dual agency is a situation that arises when a real estate agent or broker represents both the buyer and seller in the same transaction. This can create a conflict of interest, as the agent may be tempted to prioritize their own financial interests over those of their clients.

For example, in a dual agency situation, an agent may be less likely to negotiate aggressively on behalf of either party, as doing so could jeopardize their ability to close the deal and earn a commission. Additionally, the agent may have access to confidential information from both parties, which could create further conflicts of interest.

Some states and jurisdictions have laws and regulations in place to govern dual agency and require agents to disclose this type of relationship to both parties in a transaction. However, in some cases, dual agency may be prohibited altogether, or agents may be required to obtain written consent from both parties before representing them in this way.

Overall, dual agency is a complex issue, and it’s important for both buyers and sellers to understand the risks and potential conflicts of interest that can arise in this type of situation.