Information: California Real Estate Commission Official Website Colorado Dual Agency Law Legal or Illegal? Per California Real Estate Law, Subdivided Lands Law and Vacation Ownership and Time-Share Act 10018.11. “Dual agent” means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction. Legal with the written consent from both the buyer and the seller. Information: Arkansas Real Estate Commission Official Website California Dual Agency Law Legal or Illegal? Information: Arizona Real Estate Commission Official Website Arkansas Dual Agency Law Legal or Illegal? Information: Alaska Real Estate Commission Official Website Arizona Dual Agency Law Legal or Illegal? Information: Alabama Real Estate Commission Official Website Alaska Dual Agency Law Legal or Illegal? “When one licensee represents both the buyer and seller in the same sales transaction.” Per Alabama Real Estate Commission Rule 790-X-3-.13. “Limited consensual dual agency is an agency relationship where the real estate brokerage company represents both the buyer and the seller in the same real estate transaction.” Per Alabama Real Estate Commission Rule 790-X-3-.13.
Here are all 50 states and their dual agency laws: AlabamaĪlabama Dual Agency Law Legal or Illegal? Some states do not specifically define their stance on agency laws while others do, so keep that in mind when you are reading down below. Is Dual Agency Legal in my State?ĭual agency law varies from state to state, so it’s important to read and understand the laws for your state. While it can represent a risk for all parties, overall, it can save time and money. So which one is it? Well, I think it’s fair to say dual agency is okay under certain circumstances. If you look elsewhere, some articles suggest dual agency is bad, and others say dual agency is good. This can create confusion for all parties. For example, a seller can’t ask an agent for listing price advice because the agent can’t take sides in that matter.
While the process may be faster, specific advice and communication have to be limited. Remember, the higher the sales price, the more commission an agent earns, which creates an apparent conflict of interest. Think about it sellers want to land at a high price while buyers want to land on the lowest one possible. It can be tough for agents to remain neutral while acting as a dual agent. Not only do agents get the whole buyer and seller fee, but most agents acting as a dual agent cut the price for both parties, meaning dual agency can be great for everyone (financially speaking). Commission and FeesĬommission is probably the most significant advantage of dual agency. That’s 25% less hassle in scheduling meetings, times, closing, and more. It’s much easier to coordinate a transaction with three people than four. Here are the advantages and disadvantages of dual agency: Advantages Faster Processĭual agency streamlines the home-buying process. There are both pros and cons to dual agency for all parties. What are the Advantages and Disadvantages of Dual Agency? It’s also worth noting, in some states, dual agency refers to two agents working for the same company, each representing a buyer and seller (sometimes referred to as a designated agency). The general term, agency refers to the relationship an agent has with a buyer or seller (or in our case, both parties). In most states where dual agency is legal, written consent is almost always required. A dual agent can not disclose confidential information to either party and must be neutral toward both parties. What is Dual Agency?ĭefinition: Dual agency occurs when one real estate agent represents both the buyer and seller in a transaction. Within it, we will discuss whether or not dual agency is legal in your state and whether or not it’s worth the risk. This article is the ultimate guide on dual agency. In most states, though, dual agency is legal, but state laws have measures in place to protect parties that use it. While it may seem ideal from an agent’s perspective, it can lead to some significant risks, which is why it is illegal in eight states. Dual agency is when one real estate agent represents both the buyer and seller in a transaction. Ever wonder what it would be like to represent a buyer and a seller in a transaction? Well, dual agency is just that.
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