Dual Agency
While less common than having separate Seller’s Agent and Buyer’s Agent, it is acceptable to have one brokerage or its Agent representing more than one party to a transaction. This scenario is referred to as Dual Agency.
Reduction of Fiduciary Duties with Dual
Agency
In a Dual Agency situation, it is not possible for the Agent to fulfill all the fiduciary duties of each Client. For example, an Agent is unable to give undivided Loyalty to both the buyer and the seller, for they each have different goals in the transaction.
As a result, the Agent’s will disclose any and all information to both parties with the exception of two things:
1. The lowest price the seller is willing to accept, or the highest price buyer is willing to offer.
2. The reason the seller is selling, or the reason the buyer is buying.