Agency

Dual agency

One brokerage representing both buyer and seller in the same transaction

Full loyalty to both sides is impossible, so where it is permitted at all it requires informed written consent from both parties, and the agent’s ability to advise either side is sharply curtailed.

Whether dual agency is permitted, and in what form, is set by each state’s license law. Some states use designated agency instead and some replace the idea entirely with a non-agency transaction broker role.

How the exam asks about it

Some states prohibit it outright. Undisclosed dual agency is a serious violation everywhere, and the exam treats it as one.

Related terms

Designated agencyTransaction brokerAgencyFiduciary duty

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