What Is Dual Agency?
In a standard real estate transaction, the buyer has their own agent and the seller has their own agent. Each agent owes a fiduciary duty exclusively to their client. Dual agency occurs when the same agent (or two agents from the same brokerage) represents both the buyer and the seller in the same deal.
This creates an inherent conflict of interest. The seller wants the highest possible price; the buyer wants the lowest. One agent cannot zealously advocate for both sides simultaneously.
Florida's Disclosure Requirements
Florida permits dual agency under Florida Statute 475.278, but imposes strict disclosure requirements:
- Written Disclosure — The agent must provide a written "Consent to Transition to Transaction Broker" disclosure to both parties, clearly explaining that the agent will no longer be an exclusive advocate for either side.
- Transaction Broker Status — In Florida, once dual agency is disclosed, the agent typically transitions to a "transaction broker" who facilitates the deal without owing fiduciary loyalty to either party. The transaction broker must deal honestly and fairly with both sides.
- No Confidential Information Sharing — The agent cannot reveal the buyer's maximum price to the seller, and cannot reveal the seller's minimum acceptable price to the buyer.
The Risks
Dual agency is legal but dangerous. The agent earns double commission (both the listing side and the buyer side), creating a financial incentive to close the deal regardless of whether it is truly in both parties' best interest. Common risks include:
- The agent may not negotiate aggressively on price because they want both sides satisfied.
- Inspection and appraisal issues may be downplayed to keep the deal together.
- The agent has confidential knowledge from both parties that creates an unfair informational advantage.
Related Terms
- Disclosure — The written notice required before dual agency can proceed
- Contract — The purchase agreement affected by the dual agency relationship
- Appraisal — A valuation issue that may be compromised in a dual agency scenario
Barnes Walker Real Estate Transactions
Barnes Walker's real estate attorneys review dual agency disclosures and transaction broker agreements on behalf of Florida buyers and sellers, ensuring our clients' interests are fully protected when their agent is representing both sides of the transaction. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC