Dual Agency occurs when a real estate agent represents more than one party in a transaction. If you list your home for sale with an agent they represent you as the listing agent. As a consumer, you would expect that the agent represents you and serves your best interest as YOUR agent. While in the process of representing you, a buyer comes in to the picture – through advertising, marketing or by finding the house on a website or Multiple Listing Service (MLS). This buyer at first is the CUSTOMER of YOUR agent. Remember, you are still the client, as the agent represents you.
Then it gets more interesting. YOUR agent starts representing the buyer. Now the agent has 2 clients, you and the buyer. The agent has started to be a DUAL AGENT. She has 2 masters instead of one.
Why does this occur? Is it allowed? Is it a good idea?
This website is dedicated to the discussion of the effects of dual agency, but definitely has a point of view – that single agent – dual agency, where one agent represents both the buyer and seller, should not be practiced.