Dual Agency and Why it is Illegal in Texas
Dual agency occurs when a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. This creates an inherent conflict of interest because the agent is supposed to advocate for both parties, who typically have opposing goals—buyers want the lowest price, while sellers want the highest.
Why Dual Agency Illegal in Texas?
Texas law prohibits dual agency because it creates a conflict of interest that can compromise the fiduciary duty an agent owes to their client. Instead, Texas allows intermediary brokerage, a regulated alternative where a broker can facilitate a transaction between a buyer and seller while appointing separate agents to represent each party within the same brokerage.
This ensures:
The buyer and seller each receive independent representation.
Agents uphold their fiduciary duty, including loyalty and confidentiality.
The transaction remains fair and ethical.
By banning dual agency, Texas aims to protect consumers and maintain transparency in real estate transactions. For more information about Dual Agency, contact your Attorney.
