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What Is Dual Agency In Real Estate? – Zing! Blog by Quicken Loans

Dual Agency FAQs 

Still confused about dual agency? Here are some frequently asked questions to help clear up your questions and concerns.

Is dual agency illegal in some states? 

Due to the conflict of interest it creates, yes, dual agency is illegal in the following states:

  • Alaska
  • Colorado
  • Florida
  • Kansas
  • Maryland
  • Oklahoma
  • Texas
  • Vermont

Who pays commission in dual agency?

Sellers often pay the real estate commission of the agents involved with a sale, and with dual agency it is no different. That means if one agent is representing the buyer and the seller, the seller typically pays the commission for both of them.

Who benefits most from dual agency? 

Though one could argue either the buyer or the seller benefits most from working with a dual agent, the truth is that the real estate agent benefits the most from this arrangement. They get the opportunity to earn a double commission and don’t have to deal with negotiating on behalf of someone’s interests. They can’t negotiate much when they represent both sides of the transaction. 

What is an example of dual agency? 

If you opt to work with the same real estate agent who’s selling the home you’re interested in buying, that’s dual agency. Additionally, if you opt to work with a different real estate agent who happens to work for the same brokerage as your seller’s agent, that can be considered dual agency as well.

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 because it’s not really possible for the agent to fully advocate for either side of the purchase. Working with the same agent also opens the door for all sorts of potential unethical behaviors such as “siding” with one party over the other and withholding information. This is why real estate professionals generally advocate against working with a dual agent.

Help/FAQ

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