Glossary

Dual Agency

Also known as: dual representation

A single brokerage, or in some states the same individual agent, representing both the buyer and seller in the same transaction, typically requiring informed written consent from both parties.

Dual agency creates an unavoidable conflict of interest — the agent cannot simultaneously advocate for the highest price and the lowest price — so most states require explicit disclosure and consent, and some jurisdictions bar it outright or limit it to designated agency, where two different agents within the same firm each represent one side. In institutional CRE, dual agency draws heightened scrutiny because the dollar amounts and information asymmetries are larger; buyers and sellers often insist on separate representation specifically to avoid it, and some PSAs contain explicit representations about brokerage relationships to preempt later disputes. Where it does occur, the agent's duties narrow to neutral facilitation — honesty and fair dealing to both sides — rather than full fiduciary advocacy to either.