Dual agency is a relationship in which the agent represents both the buyer and the seller in the same real estate transaction. Dual agents typically owe limited duties to each of the parties. Because of the potential for conflicts of interest in a dual-agency relationship, all parties must give their informed consent. In many states, this consent must be in writing. Disclosed dual agency is legal in most states.

Dual agency typically occurs when an unrepresented buyer contacts the listing agent of a home he/she has an interest in.  If the state and the agent’s broker allow it, the agent can complete the transaction on behalf of both the seller and the buyer but must disclose the fact that he/she only legally represents the seller.  In other words, the agent owes no loyalty to the buyer. 

Often, even if state law allows dual agency, many brokerage firms opt to handle the transaction under a designated agency.