Dual Agency FAQs
Still confused about dual agency? Here are some frequently asked questions to help clarify your questions and concerns.
Is dual agency illegal in some states?
Because of the conflict of interest it creates, yes, dual agency is illegal in the following states:
Who pays the dual agency commission?
Sellers often pay the real estate commission of the agents involved in a sale, and with dual agency, it’s no different. This means that if an agent represents both the buyer and the seller, the seller usually pays the commission for both.
Who benefits most from dual agency?
While it could be said that either the buyer or the seller benefits the most from working with a double agent, the truth is that the real estate agent benefits the most from this arrangement. They have the opportunity to earn double commission and do not have to negotiate on behalf of someone’s interests. They can not negotiate a lot when they represent both sides of the transaction.
What is an example of dual agency?
If you choose to work with the same real estate agent who sells the house you want to buy, it is a double agency. Additionally, if you choose to work with a different real estate agent who works for the same brokerage as your seller’s agent, this may also be considered dual agency.
Why can dual agency be problematic?
It can be problematic to share a real estate agent with the other party in a real estate transaction, as it is not really possible for the agent to fully defend both sides of the purchase. Working with the same agent also opens the door to all sorts of potentially unethical behavior, such as “siding” with one party over another and withholding information. This is why real estate professionals generally advise against working with a double agent.