Short Answer
Dual agency occurs when one agent represents both the buyer and the seller in the same transaction. In New Jersey, dual agency is legal but requires the informed written consent of both parties. The agent must act as a neutral facilitator and cannot advocate for either party. Dual agency is controversial because it limits the agent's ability to fulfill their fiduciary duties fully. Many agents prefer to avoid dual agency and refer one party to another agent.
Dual agency creates a unique situation where the agent cannot fully represent either party's interests. The agent cannot disclose confidential information about either party, cannot negotiate on behalf of one party against the other, and must remain neutral. In New Jersey, dual agency is permitted only if both parties sign a written consent form acknowledging the arrangement and understanding that the agent's duties are limited. The agent can still facilitate the transaction, provide factual information, and help with paperwork, but they cannot advise either party on price, strategy, or negotiation tactics. Because of the inherent limitations, many agents and brokers avoid dual agency. Instead, they may refer one party to another agent in the same office, which is called designated agency. Dual agency is not legal in all states, but New Jersey allows it with proper disclosure and consent. If you are in a dual agency situation, consider hiring your own attorney or asking for a referral to another agent.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I personally avoid dual agency. I want to be able to fight for my client 100%, and dual agency does not allow that. If I am working with a buyer and they want to see a home I have listed, I refer them to another agent in my office who can represent them fully. I believe everyone deserves their own advocate. If you find yourself in a dual agency situation, make sure you understand the limitations and consider whether you want independent representation.
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