Own Luxury Homes®
Dual Agency Laws by State: Buyer Protection Guide
8 states restrict dual agency: AK, CO, FL, KS, MD, OK, TX, VT, WY. FL default = transaction brokerage (no fiduciary); single agency must be requested in writing. NM 16.61.19: dual agency makes agent a "facilitator" — exclusive advocacy ends. CO banned outright since 2003. TX intermediary: same broker paid by both sides. 42 states allow with consent; consent discloses but does not resolve the conflict. Own Luxury Homes® 12-Point Agent Integrity Audit™ — single agency only.
Dual Agency Laws by State: Where Buyers Have a Real Advocate and Where They Don't
Most buyers assume their real estate agent works for them. In most states, under most circumstances, that assumption is correct. But in a specific and common scenario — when the buyer and seller are both clients of the same agent or brokerage — it becomes legally false. The agent cannot fully advocate for your interests without violating their duties to the other party. In states that still allow this arrangement, it proceeds with your written consent. In states that have banned it, different legal structures replace it — each with their own implications for what protection you actually have. This guide maps every state's position, explains what each structure actually means for buyers, and tells you exactly what to ask before you sign anything.
The Four Agency Structures: What Each One Means for Your Protection
Structure 1: Single Agency — Full Fiduciary Advocacy
The agent represents one party only — either the buyer or the seller, never both. Fiduciary duties owed: loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. Loyalty means your agent must act in your best interest, not their own financial interest and not the other party's. Confidentiality means your agent cannot share your negotiating position, your financial limits, or your personal motivations with the seller. This is the highest level of representation available in residential real estate. It is what most buyers believe they have. It is what fewer buyers actually have than they realize.
Structure 2: Dual Agency — Fiduciary to Both, Advocate for Neither
The same agent — or two agents within the same brokerage (called "designated agency" or "in-house dual agency") — represents both the buyer and the seller in the same transaction. The agent's fiduciary duty runs to both parties simultaneously. This creates a structural impossibility: the agent cannot fully disclose the seller's bottom line to the buyer or the buyer's maximum to the seller. They cannot negotiate aggressively for either party. In practice, the dual agent becomes a facilitator while technically maintaining the appearance of agency. The agent is typically paid by both sides. Legal in 42 states and DC with written disclosure and consent. Prohibited in 8 states.
Structure 3: Transaction Brokerage — No Fiduciary Duty to Anyone
Florida's default and available in many other states. The broker provides "limited representation" to both parties but is explicitly NOT a fiduciary to either. Under Florida Statute § 475.278, transaction broker duties include: disclosing known material facts, presenting offers, limited confidentiality. What is explicitly excluded: loyalty, obedience, full disclosure of all information. The transaction broker is a neutral deal facilitator. They are not your advocate. They are not the seller's advocate. They are paid to close the transaction. Important: in Florida, transaction brokerage is the DEFAULT relationship. You must affirmatively REQUEST single agency to receive full fiduciary protection.
Structure 4: The Facilitator Model — New Mexico and Others
New Mexico law (16.61.19 NMAC) defines dual agency as a situation where "the brokerage agrees to act as a facilitator in a real estate transaction rather than as an exclusive agent for either party." The New Mexico statute explicitly states: "In all situations, a dual agent shall act in the capacity of a facilitator rather than as an exclusive agent of either party to the transaction." This is different from true single agency and different from transaction brokerage — it is a middle structure where the agent began as a fiduciary to one party and converted to facilitator when they also began representing the other. The written consent requirement applies before any offer is written. Other states use "facilitator" language in their transaction broker or dual agency rules as a synonym for the neutral, non-advocacy role.
State-by-State Map: Where Traditional Dual Agency Is Prohibited
| State | Dual Agency Status | Default Relationship | What Replaces It |
|---|---|---|---|
| Alaska | Prohibited as traditional fiduciary dual agency | Single agency or designated agency | Designated agency: separate agents within same brokerage, each with fiduciary duty to their client |
| Colorado | Prohibited outright since 2003 (Commission Rule 6.7) | Transaction brokerage or single agency | Transaction broker (no fiduciary) OR single agent for one party treating other as customer |
| Florida | Prohibited as fiduciary dual agency (Fla. Stat. § 475.278) | Transaction brokerage is the DEFAULT | Transaction broker: limited representation, no fiduciary; single agency must be affirmatively requested |
| Kansas | Prohibited (K.S.A. § 58-30,103) | Transaction brokerage or single agency | Transaction broker or designated agency with written consent |
| Maryland | Prohibited without written consent (MD Code § 17-534) | Single agency | Intracompany agent (designated agency) with disclosure; dual agency banned as fiduciary |
| Oklahoma | Prohibited as traditional dual agency | Transaction broker is default | Transaction broker: neutral facilitator; single agency available with agreement |
| Texas | Prohibited as direct dual agency; intermediary available (TREC rule) | Single agency | Intermediary: broker may represent both parties but must appoint separate associates; strict disclosure required |
| Vermont | Prohibited (Vt. Admin. Rules RE § 11.3) | Single agency | Designated agency: separate agents within same brokerage each with fiduciary duty |
| Wyoming | Prohibited as traditional dual agency | Single agency or designated agency | Designated agency with written disclosure required |
States Where Dual Agency Is Permitted: What Consent Actually Means
The 42-State Reality: Consent Is Not the Same as Protection
In the 42 states where dual agency is legal with consent, the written consent form you sign tells you there is a conflict of interest. It does not resolve the conflict of interest. After you sign, your agent still cannot: tell you the seller's lowest acceptable price, advise you to offer less than list price if that serves your interests, disclose that the seller is under financial pressure and would take less, or fight for repairs that would reduce the seller's net proceeds. The consent form is legal protection for the agent and brokerage. It is not protection for you. In any state that permits dual agency, you have the right to insist on single agency representation. Do so in writing before you tour any property listed by that brokerage.
Notable State Structures: The Details That Matter
| State | Notable Agency Structure | Consumer Impact |
|---|---|---|
| New Mexico | Dual agency converts agent to "facilitator" by statute (16.61.19 NMAC); written consent required before any offer; agent loses exclusive advocacy for either party | Agent who was your exclusive advocate legally becomes a neutral middleman once dual agency is authorized; your negotiating position is no longer protected |
| Texas | Intermediary relationship: broker may represent both parties but must appoint different associates to each; written disclosure required; associates cannot disclose confidential info to the other | Better than pure dual agency; worse than independent single agency; the associates still work for the same broker who is compensated by both sides |
| California | Dual agency permitted with written consent (Civil Code § 2079.17); disclosure at "earliest practicable opportunity"; designated agency available within same brokerage | Large brokerages with thousands of listings create routine dual agency situations; buyers may not realize their agent's brokerage also listed the property |
| Florida | Transaction brokerage is the DEFAULT; buyer must request single agency in writing to receive full fiduciary protection; most Florida buyers are in transaction brokerage without knowing it | A Florida buyer who signed a standard brokerage agreement without requesting single agency has no fiduciary advocate — their broker is legally neutral |
| New York | Dual agency permitted; designated agency available; disclosure required under RPL § 443; large Manhattan brokerages routinely have both sides of transactions | High transaction values with frequent dual agency; particularly concerning in new development sales where developer and buyer agent are both employed by same firm |
| Colorado | Dual agency banned outright since 2003; transaction broker (no fiduciary) OR single agent for one side, other party treated as customer | Colorado buyers with single agency agreements have the strongest statutory protection of any state; buyers who default to transaction brokerage have no fiduciary advocate |
“The disclosure conversation I have with every buyer before their first showing: "Before we see a single home, I need you to understand one thing: if we ever look at a property listed by my brokerage, I cannot continue as your single agent. Our system is set up to prevent that. I only represent buyers. Every property we tour, I am exclusively on your side. That is not the default in this industry. Most large brokerages have both buyers and sellers as clients and routinely find themselves in dual agency. When that happens, no one is fully on your side. You deserve to know that before you sign anything and before you trust anyone with your negotiating position."”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
Own Luxury Homes® — single agency only. No dual agency. No transaction brokerage. 12-Point Agent Integrity Audit™. Request a verified single-agency specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)