Double Commissions and Dual Agency in Real Estate Transactions

The concept of dual agency is term in real estate that references one agent serving both sides of the same real estate transaction. The practice of one agent “brokering” a deal between two sides is normal, common practice in real estate markets around the world.

In this article we will help define dual agency. We will provide some references to the topic from multiple real estate markets around the world, including why dual agency is so common in Japan. We’ll show you when dual agency causes trouble for buyers or sellers of real estate. And we’ll also show when dual agency can be beneficial.

What is Dual Agency?

Dual agency is when one agent provides advice or assistance to both sides of the same real estate transaction, typically earning a commission from both sides. Another common term for “dual agency” is “double-ending” the transaction.

One the one hand, an agent that brings together a buyer and a seller is potentially providing a service to both parties. In as far as real estate agents enable transactions, that is often a very good thing. One the other hand, there is sometimes tension between competing needs or desires of the buyer versus the seller. Sometimes when an agent provides dual agents to clients with divergent goals, one or both sides of the transaction may