Dual agency occurs when one agent, or two agents from the same brokerage, represents both the buyer and the seller in a single transaction. Because the interests of the two parties often conflict, dual agency limits the level of advocacy the agent can provide to either side.
In a true dual agency, the agent must remain neutral and cannot fully advocate for either party's negotiating position or share confidential information from one to the other. Both parties must typically give informed, written consent.
Dual agency is legal in many states but banned or heavily restricted in others because of the inherent conflict of interest. Some brokerages address it through designated agency, assigning separate agents within the firm to each party.