GLOSSARY — REAL ESTATE TERMS

Dual Agency (California)

Dual agency occurs when a single real estate agent, or two agents from the same brokerage, represent both the buyer and seller in the same transaction, requiring informed written consent from both parties under California law.

How dual agency works

California law permits dual agency, but only with informed written consent from both the buyer and seller, disclosed through the state's agency disclosure form. In a dual agency situation, the agent (or brokerage) owes a more limited duty to each party than a single agent representing only one side, since the agent cannot fully advocate for either party's interests against the other's.

What to consider before agreeing to dual agency

The main trade-off is advocacy: a dual agent must remain neutral on price and terms rather than negotiating aggressively for either side. Some buyers and sellers prefer single agency specifically to preserve full advocacy on their own behalf, particularly on negotiation-sensitive points like price, repairs, and contingency terms.

The disclosure form itself

California agents document agency relationships using a required Disclosure Regarding Real Estate Agency Relationship form under Civil Code sections 2079.13 through 2079.24, presented before the buyer and seller sign a purchase agreement -- it's a separate document from the purchase contract itself.

WHAT TO ASK BEFORE AGREEING TO DUAL AGENCY

Ask directly whether a home you're touring is also that agent's own listing
Request the agency disclosure form early, not at the signing table
Consider whether you'd prefer a dedicated single-agency advocate instead
Ask specifically what changes in the agent's duties under dual agency

Is dual agency required to be disclosed?

Yes -- California requires written disclosure and informed consent from both parties before an agent can act as a dual agent in a transaction.

Can I refuse dual agency?

Yes. You can decline to consent to dual agency and instead seek separate representation, or ask the listing brokerage whether a different agent within the firm can represent you instead.

Does dual agency save money?

Not automatically -- the compensation structure of a transaction is separate from the agency relationship. A dual agency arrangement doesn't inherently reduce fees unless the agent specifically restructures compensation as part of it.