LC-30 · Property
Dual agency in a home sale
One agent, two clients
In ordinary words
In many states a single brokerage can represent both the buyer and the seller in the same deal, if both consent. The agent cannot fully advise either side.
Why people call it a crime
People assume their agent is on their side. Finding out the same office also represents the other party feels like a rigged negotiation.
A scene, not a hypothetical statute
You think the agent is hunting for a lower price. The same brokerage has the listing. Both of you signed a dual-agency form in the stack. The agent can no longer tell either of you how far to bend.
In legal terms
Agency law normally forbids undisclosed dual agency as a conflict. Disclosed dual agency, or a designated-agency split inside one brokerage, is permitted by statute in many states if written consent is obtained. Fiduciary duties shrink to neutrality on price. Undisclosed dual agency remains a breach.
Legislatures allowed the practice with consent rather than banning it, treating the conflict as waivable.
State real-estate licensing acts and common-law fiduciary duty.
Where it stops being legal
Failure to disclose, favoring one side after promising neutrality, and steering price advice to the client who pays more can be license violations and civil breaches.