Dual Agency in Real Estate: Why I Believe Separate Representation Matters

What Is Dual Agency?

Dual agency occurs when the same real estate agent or brokerage represents both the buyer and seller in a transaction.

For example, imagine you're selling your home and your listing agent finds a buyer who also wants that agent to represent them.

That's one form of dual agency.

But here's something many consumers don't realize: In California, dual agency can also occur when two different agents from the same brokerage represent the buyer and seller.

Even though you're working with separate agents, the brokerage relationship can create a dual agency situation.

That's why understanding who represents whom is so important.

What's the Problem With Dual Agency?

Think about what buyers and sellers typically want.

A seller generally wants to secure the best possible price and terms. A buyer wants to purchase the home at a price and under conditions that work in their favor.

Those interests don't always align.

When each party has independent representation, their agents can focus on advocating for their respective clients.

But in a dual agency arrangement, the agent or brokerage owes duties to both sides. That creates limitations, particularly when it comes to negotiating conflicting interests and protecting confidential information.

For example, a dual agent generally cannot disclose a seller's willingness to accept less than the asking price or a buyer's willingness to pay more than their offer without the appropriate party's express permission.

A dual agent still has legal responsibilities to both clients. But the ability to advocate exclusively for one side is limited.

And that's where I have a problem.

Why I Prefer Separate Representation

Negotiation is one of the most important parts of a real estate transaction.

It's not just about price. It's about contingencies, repairs, closing timelines, and finding solutions when unexpected issues arise.

I believe buyers and sellers deserve an agent who can focus on their interests without also representing the other side of the transaction.

If I'm representing a seller, I want to be able to advocate for that seller's goals.

If I'm representing a buyer, I want to do the same for that buyer.

Trying to serve two parties whose interests may conflict simply isn't how I prefer to do business.

Does that mean every dual agency transaction ends badly? Of course not.

But just because an arrangement is legally permitted doesn't mean it's the right choice for every client.

And for me, separate representation is the better approach.

What Are Your Rights as a Buyer or Seller?

In California, dual agency requires disclosure and informed consent from both parties.

You have the right to ask questions, understand the proposed agency relationship, and decide whether you're comfortable with it.

Before agreeing to dual agency, consider asking:

• Who will be representing my interests throughout the transaction?
• What limitations will there be on the advice and negotiation assistance I receive?
• What information will remain confidential?
• What alternatives are available if I prefer independent representation?

And remember, you don't have to agree to dual agency simply because it's presented as an option.

If you're uncomfortable with the arrangement, discuss your alternatives before signing an agreement.

Renee's Advice

Buying or selling a home is a major financial decision. You deserve to understand exactly who is representing you and what that representation means.

My advice is simple: Choose an agent who can advocate exclusively for your interests.

I've always believed that buyers and sellers are better served when they each have their own independent representation.

That doesn't mean dual agency is illegal or that every agent who participates in it is doing something wrong. It simply means I believe there's a better way to protect my clients' interests.

And when it comes to something as important as buying or selling a home, that's not something I'm willing to compromise on.

Have questions about buyer or seller representation? Let's talk. Understanding your options before entering into an agreement is one of the smartest first steps you can take.