Minnesota allows dual agency but does not have designated representatives. Michigan allows dual agency and also has designated agents. Massachusetts allows dual agency and also has designated agents. Maryland does not have the equivalent of a transaction broker, i.e., a one-person brokerage cannot be a dual agent. Dual agency is technically legal in Maryland but only if each party is assigned their own intra-company agent. Maine allows dual agency and also has appointed agents. Louisiana allows dual agency for arm’s length transactions and also has designated agency. Kentucky allows dual agency as well as designated agency. They do have designated agents, however only one agent within the brokerage may work as a designated agent while the other agent can only serve as a transaction broker. Iowa allows dual agency and designated representation (called appointed agency), and has recommended language for inclusion in dual agency contracts. Indiana allows dual agency as a “limited agent”, as well as designated representation, called an “In-house agency relationship”. Illinois allows dual agency with consent. Idaho allows dual agency with consent as well as designated representation, called “assigned agency”. The state association provides a dual agency consent addendum for relevant transactions. A brokerage must represent one side of the transaction exclusively unless they are acting as an impartial “transaction broker”. They do not have designated representative status that allow brokers to appoint agents to buyers and sellers. Delaware allows dual agency and also allows for dual agent designated representatives to serve as statutory agents but not common law agents. Connecticut allows dual agency with consent. As of 2003, Colorado does not allow dual agency. Agents must share agency information with prospective clients via the Disclosure Regarding Real Estate Agency Relationship. California allows dual agency with consent. Limited dual agency allowed with written consent. The Arizona Association of Realtors offers a Consent to Limited Representation form for disclosing. Legal Arizona allows limited dual agency with consent. Dual agency is illegal in Alaska as of 2005, but does allow for designated representatives when fully disclosed.

A Real Estate Brokerage Services Disclosure is required to be provided to clients describing these relationships. Alabama allows for a “limited consensual dual agent”. There are disclosure requirements and often limitations on what services they are able to offer both parties. Dual agency is legal and a brokerage can represent both parties. This allows the designated representative to still offer many of the services a dual agent alone may be restricted from offering. Some states have rules for both dual agency and brokerage designated representation. Dual agency is illegal, but brokers can designate or appoint a brokerage licensee to both parties of the transaction, who would each have fiduciary duties to that party similar to dual agency. The other party is treated as a “customer”. If an agency relationship exists, it can only be to one party, buyer or seller. The state does not allow a brokerage to be an agent to both parties in a transaction with fiduciary obligations. The “sort of illegal” category is how I describe designated representation, which looks a lot like dual agency even if it technically isn’t. While the details are different from state to state, there are three broad categories of dual agency laws for real estate brokerages: illegal, sort of illegal, and legal. But even 4 of those allow for designated representation which means most brokerages can fully represent both clients during a real estate transaction.

If you have questions, speak with your broker, lawyer, or real estate association legal hotline.ĭual agency is illegal in some states, 8 to be specific. This information is correct and current to the best of my knowledge as of this writing.

NOTE: I’m a real estate agent, not a lawyer.

Ri real estate transactions