This is not Real Estate for Dummies. But, it probably should be. The basic definition of dual agency is “The same real estate agent is representing both buyer and seller in 
the same transaction”. Dual agency is the single worst issue involved in real estate. The average “Joe” out of the street easily understands that dual agency is WRONG. This seems like common sense to the regular guy. So, why can’t the politicians and many real estate agents & brokers understand this simple terrible concept? The main reason why dual agency exists is because of the glorious MOOLAH. Real estate brokers and agents have a huge financial incentive to be involved in a dual agency transaction at the detriment of their buyer or seller. Dual agency has no benefits to protect the consumer (buyer or seller). One of the simplest and best examples that I’ve ever read about the problems of dual agency actually came from a traditional real estate agent (Matt Difanis) in Illinois and not an Exclusive Buyer Agent. A few years back, Matt had a sent this letter to the Realtor Magazine.
Here is another real simple definition; agency is when a real estate broker discloses “who” & “how” they are going to represent a buyer or seller. Home buyers need to STOP spending all their time on the Internet looking at pretty pictures of potential homes and START spending more time fully understanding all types of agency (dual, single, transactional, limited or designated). Understanding agency is definitely not the most exciting part of the home buying process. As a matter of fact, it is down right boring. But, PLEASE, PLEASE, PLEASE; before you start down the path of buying a home make sure you spend time fully researching everything. As with many major financial decisions (car, home, vacation, etc.) most of us end up rationalizing decisions based on emotion, don’t make a decision based on emotion!!
Non-disclosed dual agency is ILLEGAL in all 50 states. But, only a few states have made (disclosed) dual agency illegal. Dual agency should be”outlawed” and made illegal in all 50 states. If you are a buyer or seller involved in a dual agency transaction and you don’t completely understand dual agency than you should immediately contact or RUN to your nearest real estate attorney.
Here are a few other good blogs and web sites that just say NO to dual agency: Bloodhound Realty & Homebuyer Representation
Representing People, NOT Property!
My Buyer Broker Advocate! 
12 comments
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November 14, 2012 at 4:56 pm
John P Glynn
I have been a Real Estate Broker for 25 years and I could not agree more. I have seen some agents represent all parties fairly but unfortunately most of the time I do not feel this is the case. Yes the money/greed of some agents causes the problem. I stopped doing dual agencies years ago because I found I have too much confidential information on both parties (Buyer and Seller) and there is no way to negotiate fairly. I am a believer that when I take a listing the Seller is paying enough money in commissions to be represented exclusively and receive 100% of my negotiating skills and attention.
November 19, 2012 at 10:30 am
Michael
John, Thank you for your comment. Good Info.
June 24, 2012 at 1:29 pm
Valerie Harmocy
Of course I am an agent and beg to differ with this opinion on dual agency. As long as the agent follows the law, the Realtor Code of Ethics and treats both parties fairly and equally there will and should not be any problems in a deal. Deals fall apart mailnly because of the appraisal and inspections. But low and behold, clients that are dually represented will find fault with the dual agent when these things happen convinced by articles like this one that the agent must be the culprit. I am sure there are newer agents that may not fully understand how to be a dual agent, but those that are experienced understand the the situation and can be objective and fair to both parties. And despite what folks may think, we work long and hard for our milk money. Another agent with the buyer could just have easily brought the buyer and if and when the buyer calls the listing agent directly, that tells me that the brokerage is doing a good job of advertising and in doing so is able to sell many of their own lisitngs. And I always give a break on the commission in a dual deal so everyone saves money. Thanks for reading this, Ohio Realtor.
June 25, 2012 at 12:39 pm
Michael
Thank you for your comment. Dual agency is the worst thing in real estate. You bring up a lot of “what if’s”. You state that dual agency is OK if the agent follows the law & agent follows code of ethics. Most consumers (Buyers & Sellers) would not like to take chances on those “what ifs”. A Buyer should always use an Exclusive Buyer Broker agency.
Dual agency is bad for both Sellers and Buyers. This is NOT me saying this but the real estate division of the state of Ohio. All disclosures required by the State of Ohio disclose that the fiduciary service given to a Buyer and a Seller in a dual agency transaction is reduced and/or limited.
A direct quote from a state of dual agency disclosure: “For this reason, the dual agent(s) may not be able to advocate on behalf of the client with same skill and determination the dual agent may have if the agent represents only one client”.
Dual agency is good for no one. A home buyer should always search out and use a true “Exclusive Buyer Agent”.
Good luck out there.
HomeBuyer Advocate Mike
February 21, 2011 at 12:59 am
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I am very happy to see the information about Dual Agency. Even though I do not enough knowledge about it but i think dual agency is the worst thing in real estate for consumers. But now I got clear understanding of it. I have heard that it is illegal in some places?