A dual agency agreement is a legal agreement that allows a real estate agent or broker to act as both the buyer’s and seller’s agent in a single transaction. This means that the same agent is representing both parties, which can sometimes present a conflict of interest.

Under a dual agency agreement, the agent owes a fiduciary duty to both the buyer and the seller. This means that the agent must act in the best interests of both parties and avoid any actions that could be detrimental to either.

However, a dual agency agreement requires the informed consent of both the buyer and the seller. This means that both parties must be fully aware of the terms of the agreement and the potential implications of having the same agent represent them.

Informed consent is a legal requirement designed to protect the rights and interests of both parties in a real estate transaction. It ensures that both the buyer and the seller understand the nature of the dual agency agreement and the potential benefits and drawbacks of having the same agent represent them.

In order to obtain informed consent, the agent or broker must disclose all material facts to both parties. This includes information about the property, the sale price, and any potential conflicts of interest that may arise under a dual agency arrangement.

The agent must also explain the potential risks and benefits of a dual agency agreement to both parties. This includes discussing issues such as confidentiality, disclosure, and negotiation strategies.

It is important for both the buyer and the seller to carefully consider the terms of a dual agency agreement before agreeing to it. While it can be advantageous in some situations, it can also present significant risks and conflicts of interest.

In order to ensure that the dual agency agreement is fair and equitable for both parties, it is essential to engage the services of an experienced real estate agent or broker who is knowledgeable about the legal requirements and implications of such agreements.

In summary, a dual agency agreement requires the informed consent of both the buyer and the seller. This ensures that both parties are fully aware of the terms of the agreement and the potential risks and benefits associated with having the same agent represent them. By engaging the services of an experienced real estate professional, buyers and sellers can ensure that their interests are protected and that the transaction proceeds smoothly and equitably.