What Is Dual Agency in a Real Estate Transaction?

Understanding Dual Agency in Ohio Real Estate

As a local Realtor in the Dayton market, you may hear the term dual agency when buying or selling a home. Dual agency occurs when the listing agent — the agent with the sign in the yard — ends up working directly with a buyer and representing both the buyer and the seller in the same transaction.

Can One Agent Represent Both Sides?

While the term “representing both parties” is commonly used, the truth is that no Realtor can fully advocate for two clients with opposing goals at the same time. In a dual agency situation, the agent’s role becomes extremely limited.

As a dual agent, we become what’s known as a conduit of information — meaning we cannot advocate for either the buyer or the seller. Instead, our responsibility is to relay information back and forth without giving advice, strategic guidance, or negotiation direction to either side. This limitation alone can create confusion or unease as the transaction progresses.

Why Dual Agency Can Create Discomfort

Dual agency can lead to both buyer and seller feeling uncomfortable as the transaction moves forward, especially when things don’t go smoothly.

Situations Where Tension Often Arises:

• Inspection repairs:
  If inspections uncover multiple issues and the buyer is not willing to work things out, the seller may feel like the dual agent is not working hard enough for them. 
  The buyer may feel the same if the seller refuses to make repairs, since the agent cannot advocate on the buyer’s behalf either.
  
  
• Negotiation limits:
  Because the agent must remain neutral, neither party gets the full representation they typically expect in a traditional transaction and this can lead to more doubt. 
  

The Financial Incentive Concern

In many cases, a Realtor may earn more commission in a dual agency situation because only one agent is involved. Even when handled ethically, the perception of financial incentive alone can cast doubt over the whole transaction for both buyer and seller.

Final Thoughts

Dual agency is legal in Ohio, but it’s not always the most comfortable path for clients who want strong, dedicated representation through every step of a home purchase or sale. When choosing a Realtor in Dayton, Beavercreek, or the surrounding Miami Valley, make sure you understand how representation works—and what level of advocacy you expect in your corner.  I avoid being a dual agent so there is less stress and complications.  If you would like to learn more about the mechanics of it, please just reach out.