What Is Dual Agency in Real Estate? 2026 Guide for Agents

Dual agency is one of the most debated practices in real estate in 2026. It occurs when a single agent or brokerage represents both the buyer and the seller in the same transaction. Following the March 2024 National Association of Realtors (NAR) settlement in the Sitzer-Burnett lawsuit, a class-action antitrust case that challenged traditional commission structures, dual agency has attracted renewed scrutiny from regulators, consumer advocates, and agents alike. At least eight U.S. states now ban or heavily restrict the practice, yet it remains legal in the majority of markets. Whether you view dual agency as a practical convenience or an inherent conflict of interest, understanding how it works, where it is legal, and what it means for your clients is no longer optional. It is a baseline requirement for any agent operating in the post-settlement landscape.

Key takeaways

• Dual agency means one agent or brokerage represents both buyer and seller in the same deal, creating a built-in tension between two sets of fiduciary duties.
• As of 2026, at least eight states ban or severely restrict dual agency, while most others require written disclosure and informed consent from both parties.
• The March 2024 NAR settlement changed how buyer’s agents are compensated, and some industry observers expect this shift to increase dual agency scenarios.
• Designated agency, where two agents within the same brokerage each represent one side, is a common alternative that preserves some advocacy for both parties.
• Agents who practice dual agency must prioritize full disclosure, written consent, and strict neutrality to reduce legal and ethical risk.

What is dual agency in real estate?

Dual agency occurs when a single real estate agent or brokerage represents both the buyer and the seller in one transaction. This arrangement can happen intentionally, with an agent agreeing to act on behalf of both parties from the start. It can also happen unintentionally, such as when a buyer becomes interested in a property listed by their own agent’s firm.

You may hear dual agency referred to as “double ending the deal” or “double closing.” These are colloquial industry expressions, not formal legal terms. Regardless of the label, the core issue is the same: one agent owes a fiduciary duty (a legal obligation to act in a client’s best financial interest) to two parties whose interests are inherently opposed.

The practice drew national attention after the March 2024 NAR settlement in the Sitzer-Burnett lawsuit. That settlement requires changes to the way buyer’s agents are compensated, and some analysts at Inman have argued that these changes could increase dual agency scenarios. As of 2026, the full effects of the settlement are still unfolding, but the conversation around dual agency has never been more relevant for working agents.

Dual agency vs. designated agency

One of the most common points of confusion is the difference between dual agency and designated agency. In a designated agency arrangement, two separate agents within the same brokerage each represent one party. The buyer’s designated agent advocates for the buyer, and the seller’s designated agent advocates for the seller. The brokerage itself remains neutral.

This distinction matters because designated agency preserves a degree of individual advocacy that pure dual agency does not. Several states that restrict dual agency, including Colorado, require designated agency as the default model when both parties are clients of the same brokerage.

Is dual agency legal in 2026?

The legality of dual agency depends entirely on state law. As of 2026, at least eight states ban or heavily restrict the practice. Colorado prohibits dual agency outright and requires designated agency instead. Florida Statute § 475.278 similarly restricts the practice by mandating transaction brokerage as the default relationship. Other states with notable restrictions include Alaska, Kansas, Maryland, Texas, Vermont, and Wyoming.

In states where dual agency is permitted, agents are typically required to provide a dual agency disclosure form. Both the buyer and the seller must sign this form before the agent can proceed. The disclosure must explain the conflicts of interest that arise when one agent represents both sides. It must also clarify that the agent cannot fully advocate for either party’s negotiating position.

If you practice in a state that allows dual agency, check your state real estate commission’s website for the most current disclosure requirements. Regulations can change quickly, and the post-settlement environment has prompted several states to revisit their agency laws.

Advantages of dual agency

Dual agency is not without its practical benefits, particularly in specific market conditions. Here are the most commonly cited advantages.

• Faster communication: With a single agent managing both sides, there is no back-and-forth between two separate agents. This can shorten response times and reduce miscommunication during negotiations.
• Potential cost savings: Because the agent is not splitting the commission with a cooperating broker, some dual agents reduce their total fee. This can lower the overall transaction cost for the seller, the buyer, or both.
• Deep market knowledge: A listing agent who also represents the buyer often has a detailed understanding of the property, the neighborhood, and the seller’s timeline. For example, a listing agent who specializes in luxury real estate may be the most knowledgeable person to help an out-of-town buyer who lacks a local agent.
• Simplified logistics: Scheduling showings, inspections, and appraisals can be easier when one agent coordinates both sides of the transaction.

Buyer’s agent comp strategies

Get three buy-side compensation structures that will appeal to clients while protecting your paycheck. We also include templates with sample language you can use to amend your current buyer’s agreement.

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Disadvantages and ethical concerns

The advantages of dual agency come with serious trade-offs. For many agents and consumer advocates, the risks outweigh the convenience.

• Conflict of interest: This is the central concern. An agent cannot simultaneously negotiate the highest price for the seller and the lowest price for the buyer. The dual agent must remain neutral, which means neither party receives full advocacy.
• Reduced negotiation power: In a single-agency relationship, your agent fights for your interests at the negotiating table. In a dual agency arrangement, the agent cannot share confidential information about either party’s motivations, financial position, or willingness to compromise. This limits the agent’s ability to negotiate effectively on behalf of either client. For agents looking to sharpen their skills in this area, a real estate negotiation class can help clarify the boundaries.
• Legal exposure: Even with full disclosure and signed consent, dual agency can lead to legal disputes. If one party later feels they were not adequately represented, or if confidential information is inadvertently shared, the agent and brokerage face liability.
• Erosion of consumer trust: The perception that an agent is “double dipping” on commission can damage your real estate brand, even if the arrangement is fully disclosed and legal.

When you have agents that aren’t successful, they’ll do things to make the deal that aren’t always to the best interest of the buyer and the seller. It’s to the best interest of the agent.

Stephen Shapiro, Luxury Real Estate Broker

Shapiro’s observation underscores why regulators and consumer groups remain skeptical of dual agency. The financial incentive for the agent to close the deal can, in some cases, override the obligation to protect both clients equally. This is not a theoretical concern. It is the reason multiple states have banned the practice entirely.

Common dual agency situations

While dual agency is controversial, there are specific scenarios where it arises naturally and may make practical sense for the parties involved.

Niche or specialized markets

In markets with a limited pool of qualified agents, dual agency can occur simply because one agent has the knowledge and relationships to serve both sides. This is common in agricultural properties, commercial real estate, and high-end residential markets where specialized expertise matters more than having separate representation. A strong real estate value proposition in a niche market can naturally attract both buyers and sellers to the same agent.

Intra-family or close-knit community transactions

When a property is sold within a family or a tight community where both parties already know each other, a dual agent can serve as a neutral facilitator. In these cases, the buyer and seller often negotiate terms directly. The agent manages paperwork, timelines, and compliance rather than adversarial negotiation.

Low-inventory markets

In a market with limited inventory and high demand, dual agency can give a buyer a faster path to a property. If a listing agent knows a qualified buyer is already in their network, the transaction can move quickly. This speed can be a real advantage in competitive markets. However, the agent must maintain strict boundaries and full transparency to avoid conflicts of interest.

Why dual agency might grow after the NAR settlement

The March 2024 NAR settlement reshaped how buyer’s agents are compensated. Sellers are no longer required to offer compensation to buyer’s agents through the MLS. As a result, some buyers may struggle to find or afford separate representation, particularly in lower-price-point transactions. This dynamic could push more buyers toward working directly with the listing agent, increasing dual agency scenarios in 2026 and beyond.

Several other factors are contributing to this trend.

• Technology and information access: Buyers in 2026 have more access to property data, comparable sales, and market analysis than ever before. Some buyers feel confident enough to work with a listing agent directly, especially if they have done their own research using tools like a well-built property search website.
• Changing consumer expectations: Some buyers and sellers prefer the simplicity of working with a single point of contact, particularly when they have an existing relationship with the agent.
• Large brokerage models: The growth of large real estate firms and teams that handle both buy-side and sell-side transactions creates more opportunities for dual agency within a single organization. These firms often have internal policies for managing conflicts, but the structural incentive remains.

A tension will define the next several years of the industry: Even as dual agency becomes more common, the demand for professional representation is not going away. Agents who can clearly articulate the value they bring to each side of a transaction will be better positioned to navigate this shift. Building a strong online reputation is one way to demonstrate that value before a client ever picks up the phone.

How to handle dual agency the right way

If you operate in a state that permits dual agency, here is a practical framework for handling it ethically and legally.

1. Know your state law: Before entering any dual agency arrangement, confirm the specific disclosure requirements, consent forms, and limitations in your state. Laws vary widely and are changing in the post-settlement environment.
2. Disclose early and in writing: Do not wait until the offer stage. Disclose the potential for dual agency as soon as you recognize it could arise. Provide the dual agency disclosure form and walk both parties through it in plain language.
3. Set clear expectations: Explain to both the buyer and the seller exactly what you can and cannot do as a dual agent. You cannot share one party’s confidential information with the other. You cannot advise either party on what price to offer or accept. You can facilitate the transaction, manage timelines, and ensure compliance.
4. Document everything: Keep written records of all communications, disclosures, and consents. If a dispute arises later, your documentation is your best defense.
5. Consider referring one side: In many cases, the cleanest solution is to refer the buyer or seller to another agent within your brokerage (designated agency) or to an agent at a different firm. This preserves your relationship with both parties while reducing your legal exposure.

Agents who want to build a business that attracts both buyers and sellers without relying on dual agency should invest in their real estate marketing plan. A strong marketing presence generates enough inbound interest that you can refer one side of a transaction without losing the relationship. Tools like a real estate buyer guide on your website can also help attract buyer clients independently of your listings.

Buyer’s agent comp strategies

Get three buy-side compensation structures that will appeal to clients while protecting your paycheck. We also include templates with sample language you can use to amend your current buyer’s agreement.

• Download now