Dual agency happens when one real estate agent represents the buyer and the seller.

How is commission paid?

Real estate agent commissions – typically around 5% – 6% and paid by the seller – usually are split between the buyer’s agent and the seller’s agent when a home is sold. Dual agents, however, receive the entire commission.

Is dual agency illegal?

The National Association of REALTORS® has strict rules to protect buyers and sellers who have entered into dual-agency agreements. To reduce conflicts of interest, dual agents can’t advise the buyer and seller. Because of the high risk of unethical behavior, some states don’t allow dual agency.

When should you consider dual agency?

Before you move forward with a dual-agency agreement, weigh the benefits and risks and consider speaking with a real estate attorney familiar with the state’s laws. The problem with dual agency is the agent can’t fully advocate for the best interest of either the buyer or the seller. It is an ethical tightrope even the most veteran agents can struggle to balance.