Dual Agency

What is Dual Agency?

Dual agency occurs when one real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Why Dual Agency Matters in Real Estate

In Canadian real estate, dual agency—also called multiple representation—creates potential conflicts of interest because the agent owes fiduciary duties to both parties. These duties include loyalty, confidentiality, and full disclosure, which can become challenging when representing opposing interests in a negotiation.

Some provinces, like British Columbia, have restricted or banned dual agency in most cases to protect consumer interests. In other regions, dual agency is allowed but requires full written consent from both buyer and seller after all duties and risks are explained.

Buyers and sellers involved in dual agency transactions must understand that the agent cannot advocate exclusively for either party. Instead, the agent becomes a neutral facilitator. This may limit the level of advice provided during negotiations or condition handling.

Understanding dual agency is critical for ensuring transparency, protecting one’s interests, and deciding whether to proceed with a single-agent transaction or request separate representation.

Example of Dual Agency in Action

A real estate agent in Ontario lists a property and later assists a buyer interested in the same home. Both parties agree in writing to dual agency and understand the agent must remain neutral.

Key Takeaways

• One agent or brokerage represents both buyer and seller.
• Creates potential conflicts of interest.
• Requires written consent and clear disclosure.
• Restricted or prohibited in some provinces.
• Limits how much advice an agent can give either party.

Related Terms

• Buyer’s Agent
• Listing Agent
• Agency Relationship
• Buyer Representation Agreement
• Exclusive Listing Agreement