Glossary / Commissions and splits
Also known as: Dual representation
Dual agency is when one broker, or sometimes two brokers at the same firm, represents both sides of the same transaction, such as the landlord and the tenant on a lease. Where it is allowed, it generally requires disclosure and written consent from both parties.
Redfin defines dual agency as "when one real estate agent, or sometimes two agents from the same brokerage, represents both the buyer and seller in the same transaction." Century 21 gives a similar definition, notes that it often arises when a buyer contacts the listing agent directly instead of using their own agent, and says both parties must give written consent. According to Redfin, dual agency is prohibited in Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont, and where it is allowed "the dual role must be disclosed, and both parties are required to provide written consent." Most published guidance focuses on home sales, and how agency rules apply to commercial leases varies by state, so check your state's law. This is not legal advice.
Dual agency changes how much you earn because there is no outside broker to share with. Redfin notes that the agent keeps the full commission rather than splitting it, and Hauseit says that when a buyer has no separate representation, the listing agent may represent both sides and retain the entire commission. Redfin also points out that, because of this, the parties may ask for a reduced rate, so the total fee on a dual agency deal can be lower than on a co-brokered one. When two brokers at the same firm represent each side, how the fee is divided internally depends on firm policy and your Commission split.
If you represent both sides, disclose it early, get written consent from both parties, and agree on the fee before negotiations start.
