What is dual agency?

Dual agency is a real estate practice where a single agent or broker represents both the buyer and seller in a transaction. In Florida, dual agency is not illegal, but it is highly regulated and discouraged by the state's real estate licensing laws.

The state of Florida allows for "designated agency," where a brokerage firm can designate different agents within the firm to represent the buyer and seller in a transaction. This allows for each party to have their own agent, while still working under the same brokerage.

However, dual agency is not allowed in Florida because it creates a conflict of interest. When one agent represents both the buyer and seller, they may prioritize their own interests over those of their clients. This can create an unfair advantage for one party, leading to potential legal issues.

Additionally, dual agency can make it difficult for the agent to provide objective advice to both parties, as they have a duty to act in the best interests of both the buyer and seller.

To avoid conflicts of interest and ensure a fair transaction, Florida's real estate licensing laws require agents to provide full disclosure to their clients and avoid any actions that could be perceived as a breach of their fiduciary duty. By working under designated agency, agents can represent their clients while avoiding conflicts of interest and maintaining a high level of professionalism.