The dual agency definition is commonly referred to when a real estate agent is representing both buyer and seller in the same real estate transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent to dual agency law.
This relationship involves the following limitations:
- The Agent will deal with the Buyer and the Seller impartially.
- The Agent will have a duty of disclosure to both the Buyer and the Seller.
- The Agent will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the Offer, or that the Seller is willing to accept a price or terms other than those contained in the Listing.
- The Agent will not disclose the motivation of the Buyer or the Seller to sell unless authorized by the Buyer or the Seller.
- The Agent will not disclose personal information about either the Buyer or the Seller unless authorized in writing.
- The Agent will disclose to the Buyer the defects about the physical condition of the Property known to the Agent.
Before receiving an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.