Can a real estate agent represent both sides of a transaction in every state? Is Dual Agency legal in Florida and Texas?

When a real estate broker and/or an agent of the broker represents both the buyer and the seller in a transaction, it is commonly referred to as Dual Agency.

Dual Agency implies a fiduciary duty to the represented parties. As a fiduciary, a real estate broker will be held under the law to owe certain specific duties to his principal, in addition to any duties or obligations set forth in a listing agreement or other contract of employment. These specific fiduciary duties include Loyalty, Confidentiality, Disclosure, Obedience, Reasonable care and diligence, and Accounting.

It may be a conflict of interest when an agent represents both sides, due to the agent having knowledge of sensitive information that could influence the transaction. For example, the seller's bottom line, the buyer's willingness to go up in price, motivation levels, and the list goes on.

In most states, Dual Agency is legal as long as the agent discloses the dual agency in writing to both sides of the transaction.

In a few states like Texas and Florida, Dual Agency is not legal in the same way as it is everywhere else. An agent can represent both sides, however, not in the same capacity as when they have a fiduciary duty to both the buyer and seller.

If you're working in one of those states, it is important to understand the difference between an Agency relationship and an Intermediary or Transactional relationship.

In Florida, instead of acting as a Dual Agent, the agent may act as a Transaction Broker. In this case, they can legally facilitate both sides of the transaction and earn both sides of the commission. However, there is no fiduciary duty to either buyer or seller. Sellers may be willing to relieve the listing agent of their fiduciary responsibility if the agent has procured an attractive offer from a buyer that they are representing.

In Texas, this role by the agent is called an Intermediary. The key difference is that the fiduciary duty owed to the client by the real estate agent is no longer applicable to either party.