Dual agency occurs when a single real estate agent represents both the buyer and the seller in the same transaction. This means the agent is responsible for facilitating the deal while maintaining fairness and neutrality. In Virginia, dual agency is legal and does require full disclosure to both parties due to the potential conflicts of interest involved.
By Lynn Norusis
April 2025
What are the risks of dual agency?
1. Conflict of Interest
The most significant drawback of dual agency is the potential for conflicts of interest. A real estate agent’s duty is to advocate for their client’s best interests. However, when representing both the buyer and the seller, the agent must remain neutral, which can make it difficult to fully advocate for either party.
2. Limited Negotiation Support
Since the agent must remain impartial, they cannot negotiate on behalf of either party. Buyers and sellers may feel they are not getting the best possible deal because the agent is unable to push for one side’s advantage over the other.
3. Legal and Ethical Concerns
Due to the complexities and potential for bias in dual agency, some states have strict regulations or outright bans on the practice. In states where it is legal, like Virginia, full disclosure and consent from both parties is required. Buyers and sellers should ensure they fully understand their rights and protections before agreeing to dual agency.
Should You Consider Dual Agency?
Dual agency can work well in certain situations, such as when both the buyer and seller are highly knowledgeable about the real estate process and are comfortable navigating negotiations independently. It can also be beneficial in transactions involving new construction homes where a builder’s agent represents both sides, as long as the buyer understands that the builder agent works for and represents the interests of the builder, not the buyer.
Before entering into a dual agency agreement, it’s essential to understand the legal implications, weigh the pros and cons, and determine whether the arrangement aligns with your real estate goals. If you are new to buying or selling a home, or if you prefer strong representation advocating solely for your interests, a traditional single-agency approach may be the better choice.
If you have any questions regarding representation in a real estate transaction, feel free to reach out to a member of the FOCUS on NoVA Real Estate® team.
