July 21, 2024
A real estate agent can represent both a buyer and a seller in 42

The Dilemma of Dual Agency

When it comes to buying or selling a home, many people rely on the expertise and guidance of a real estate agent. However, one question that often arises is whether a real estate agent can represent both the buyer and seller in a transaction. This practice, known as dual agency, has both its advantages and disadvantages, and it is important for both parties to understand the implications before proceeding.

Advantages of Dual Agency

One of the main advantages of dual agency is the potential for cost savings. By working with a single agent who represents both parties, there is a possibility for reduced commission fees. This can be appealing for both buyers and sellers, especially in a competitive real estate market where every dollar counts.

Another advantage is the convenience and efficiency that dual agency offers. With a single agent handling both sides of the transaction, there is less back-and-forth communication between multiple parties. This can streamline the process and make it easier to negotiate and finalize the deal.

Disadvantages of Dual Agency

While there are potential benefits to dual agency, there are also several disadvantages that should be considered. One of the main concerns is a conflict of interest. When an agent represents both the buyer and seller, their loyalty and fiduciary duty may be divided. This can raise questions about whether the agent is truly acting in the best interests of both parties.

Another disadvantage is the potential for unequal representation. In a dual agency situation, the agent may be more inclined to prioritize one party over the other, whether consciously or unconsciously. This can lead to a lack of advocacy for one side, which is not ideal when significant financial decisions are at stake.

Alternatives to Dual Agency

Given the potential drawbacks of dual agency, many real estate professionals and organizations discourage or even prohibit this practice. Instead, they advocate for alternatives such as designated agency or transaction brokerage. In designated agency, separate agents are assigned to represent the buyer and seller, ensuring that each party has dedicated representation. Transaction brokerage, on the other hand, involves a neutral third party facilitating the transaction without representing either party.

Both designated agency and transaction brokerage aim to provide a more balanced and unbiased approach to real estate transactions. They prioritize the best interests of each party and minimize the potential for conflicts of interest.


While it is possible for a real estate agent to represent both the buyer and seller in a transaction, it is not without its challenges. Dual agency can offer cost savings and convenience, but it also raises concerns about conflicts of interest and unequal representation. As a result, many professionals and organizations advocate for alternatives that prioritize dedicated representation and unbiased facilitation of real estate transactions. Ultimately, it is important for both buyers and sellers to carefully consider their options and make an informed decision that aligns with their best interests.