Short Answer
Dual agency occurs when one agent or brokerage represents both the buyer and the seller in the same transaction. It is legal in New Jersey but requires written consent from both parties. Dual agency creates a conflict of interest because the agent owes fiduciary duties to both sides, making it impossible to fully advocate for either party. Many experienced agents, including myself, do not practice dual agency because it compromises the level of representation each client deserves.
In a traditional transaction, the listing agent represents the seller's interests, and the buyer's agent represents the buyer's interests. In dual agency, one agent or brokerage represents both parties, which creates inherent conflicts. The agent cannot share confidential information about either party's motivations, budget, or walkaway price. The agent cannot advise either party on strategy in a way that disadvantages the other. This limits the value each party receives from their agent. If dual agency arises in a transaction, both parties must sign a written consent form acknowledging the arrangement and agreeing to proceed. Some brokerages handle dual agency by having different agents within the same firm represent each side, known as designated agency, which is less conflicted but still requires disclosure. If you are presented with a dual agency situation, consider whether you are comfortable with limited representation or whether you would prefer to have an agent who is exclusively on your side.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I believe that both buyers and sellers deserve full, undivided representation. That is why I do not practice dual agency. If I am representing a seller and a buyer wants to work with me, I will refer the buyer to a trusted colleague so both parties get the full benefit of professional representation. If you are presented with a dual agency situation, ask yourself whether you are comfortable with your agent keeping secrets from you. If that does not sit right, you have the right to insist on separate representation.
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