Own Luxury Homes®
States That Restrict Dual Agency: What Each Law Requires
CO banned 2003 — no workaround. FL 475.278: transaction brokerage is DEFAULT; no fiduciary; single agency must be requested in writing. NM 16.61.19: dual agent becomes "facilitator not exclusive agent" by statute — advocacy ends. TX: intermediary — same broker paid by both; separate associates. AK, VT, WY: designated agency only — separate agents, same brokerage, broker paid by both. KS, OK: transaction broker default; dual agency banned but fiduciary not automatic. Own Luxury Homes® 12-Point Agent Integrity Audit™ — single agency only.
The States That Restrict Dual Agency: What Each Law Actually Requires and What It Means for Buyers
The eight states that restrict dual agency did not all make the same policy choice. Each has a different legal framework, different default relationships, and different levels of protection for buyers. Understanding what your state's law actually requires — not just whether dual agency is "banned" or "allowed" — is the only way to know what you're actually protected against.
Colorado: The Strongest Ban
What Colorado Law Actually Says
Colorado Commission Rule 6.7 prohibits dual agency outright since 2003. No amount of written consent can make dual agency legal in Colorado. A Colorado brokerage can operate in one of three ways: (1) single agent for the seller, treating the buyer as a customer (no fiduciary to buyer); (2) single agent for the buyer, treating the seller as a customer (no fiduciary to seller); (3) transaction broker for either or both parties (no fiduciary to anyone). Importantly: Colorado's ban is a REAL ban. There is no "designated agency" workaround where two agents from the same brokerage each represent one side with the brokerage claiming neutrality. If the brokerage represents both the buyer and seller in a transaction, the brokerage must convert to transaction brokerage — neither party has a fiduciary advocate. Colorado buyers who want full fiduciary protection must ensure their agent's brokerage has no relationship with the seller.
Florida: The Default Problem
Why Florida's Approach Actually Reduces Consumer Protection
Florida Statute § 475.278 eliminated fiduciary dual agency but replaced it with transaction brokerage as the DEFAULT relationship. This is more dangerous for buyers than most dual agency states because the absence of a fiduciary relationship is automatic — the buyer must take action to get single agency protection. Under transaction brokerage, Florida licensees must: deal honestly and fairly, disclose known material facts, present offers, and maintain limited confidentiality. They are NOT required to: be loyal to the buyer, follow the buyer's instructions when they conflict with closing the transaction, or advocate for the buyer's best financial outcome. A transaction broker is a neutral deal facilitator. If you are working with a Florida agent and you have not signed a single agency agreement, you almost certainly have a transaction broker — not a fiduciary advocate.
| Florida Relationship Type | Fiduciary? | What Agent Must Do | What Agent Can Skip | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Transaction Broker (DEFAULT) | No | Disclose material facts; present offers; limited confidentiality | Loyalty; full obedience; full disclosure of all information; advocating for your negotiating position | ||||||
| Single Agent (must be requested in writing) | Yes — full fiduciary | Loyalty, confidentiality, obedience, full disclosure, accounting, reasonable care | Nothing — owes you everything a fiduciary can provide | ||||||
| No Brokerage Relationship | No | Honest dealing; disclose known material defects; account for funds | Most things; no representation of any kind | ||||||
| Florida law requires the relationship type be disclosed in writing. Most Florida buyers sign standard transaction broker agreements. To get single agency, you must specifically request it and the agent must agree. Not all Florida brokerages offer single agency. | |||||||||
Texas: The Intermediary Structure
What Texas Intermediary Really Means
Texas prohibits direct dual agency but permits the "intermediary" relationship under TREC rules. Under the intermediary structure: a broker who has written agreements with both a buyer and a seller for the same property may represent both by appointing different associates (agents) to each party. The appointed associate may advise and assist their client. The broker — who sits above both associates — cannot favor either client and may not disclose confidential information from one client to the other. The Texas disclosure form (IABS — Information About Brokerage Services) must be provided at first substantive contact. Why this matters: both associates work for the same broker, the broker is compensated by both sides, and the broker's financial interest is in closing the transaction regardless of which party is advantaged. Texas buyers are better protected than in pure dual agency states but less protected than with a fully independent single agent.
New Mexico: The Facilitator Conversion
How New Mexico Dual Agency Works (and Why "Facilitator" Changes Everything)
New Mexico law (16.61.19 NMAC) defines dual agency as "an express written agreement that modifies existing exclusive agency agreements to provide that the brokerage agrees to act as a facilitator in a real estate transaction rather than as an exclusive agent for either party." The critical statutory language: "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 means: if you begin working with a New Mexico broker as your exclusive buyer's agent and that agent also represents the seller of a property you want to buy, they can continue in the transaction — but they are legally required to convert from your advocate to a neutral facilitator. They can no longer exclusively represent your interests. They must obtain your written consent before writing any offer. What this means practically: the person you trusted to fight for your best price becomes the person who facilitates the transaction that closes at whatever price both parties agree to — without any advocate on your side.
Alaska, Vermont, Wyoming: Designated Agency as the Alternative
What Designated Agency Actually Provides
Alaska, Vermont, and Wyoming prohibit traditional dual agency but permit designated agency: two different agents within the same brokerage, each designated to represent one party with full fiduciary duties. In theory, designated agency gives each party a genuine advocate. In practice, several issues arise: (1) Both designated agents work for the same employing broker. The broker is compensated by both sides. The broker's financial interest is in closing the transaction. (2) Both agents are paid from the same commission pool. Their individual financial interest is aligned with closing, not with either party. (3) In small markets or small offices, the designated agents may have close professional relationships that create informal information flows. Designated agency is meaningfully better than dual agency but it is not equivalent to independent single agency with agents who have no financial connection to each other.
Maryland: Prohibited but With a Carve-Out
Maryland's Intracompany Agent Structure
Maryland Code § 17-534 prohibits dual agency but permits "intracompany agents" — effectively designated agency where two agents from the same brokerage each represent one party. Maryland requires written disclosure and consent for intracompany agency. The Maryland Real Estate Brokers Act also includes one of the stronger written disclosure requirements in the country: the disclosure must occur before any substantive discussion of price or terms. Maryland buyers who request single agency from an independent brokerage receive the strongest available protection in that state.
Kansas and Oklahoma: Transaction Broker as the Default
The Hidden Risk: When "Neutral" Is the Starting Point
Kansas and Oklahoma both restrict traditional dual agency but make transaction brokerage the default relationship. In Oklahoma, a broker is presumed to be a transaction broker (neutral facilitator, no fiduciary) unless a written agency agreement specifies otherwise. This is similar to Florida's structure and creates the same consumer risk: buyers who don't specifically request and sign a written single agency agreement have no fiduciary advocate by default. The prohibition on dual agency is somewhat hollow when the default relationship already provides no fiduciary protection.
“The state law question I get most from relocating buyers: "I'm moving from Colorado to Florida — how does my agent relationship change?" The honest answer: dramatically. In Colorado, if you had a single agency agreement, your agent owed you full fiduciary duties and dual agency was banned outright. In Florida, the default relationship is transaction brokerage. Your new Florida agent may be legally neutral unless you specifically request single agency in writing and they agree to it. Many Florida brokerages don't offer single agency at all — they operate exclusively as transaction brokers. In that case, nobody is exclusively on your side in the highest-stakes financial transaction of your life. Ask the question before you sign anything: "Are you a single agent fiduciary for me, or a transaction broker?" Get the answer in writing.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What states ban dual agency?
Eight states restrict or prohibit traditional fiduciary dual agency: Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, Vermont, and Wyoming. Each has a different legal structure replacing it: Colorado banned it outright with no workaround. Florida replaced it with transaction brokerage as the default (no fiduciary to anyone). Texas permits intermediary relationships with separate associates. Alaska, Vermont, and Wyoming allow designated agency with separate fiduciaries.
Is transaction brokerage better or worse than dual agency?
Transaction brokerage is different, not necessarily better. In dual agency, the agent owes fiduciary duties to both parties — creating a conflict but at least acknowledging a duty. In transaction brokerage, the agent owes fiduciary duties to neither party — they are explicitly a neutral facilitator. For buyers, transaction brokerage means no loyalty, no full disclosure obligation, no obedience to your instructions when they conflict with closing. Florida's default transaction brokerage affects millions of buyers who believe they have an advocate but legally do not.
What is the New Mexico facilitator rule?
Under 16.61.19 NMAC, New Mexico defines dual agency as an agreement that converts a broker from exclusive agent to facilitator. The 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." A buyer's agent who also represents the seller loses their exclusive advocacy and becomes a neutral middleman by law. Written consent from both parties is required before any offer is written.
Own Luxury Homes® — single agency only, in every state we operate. 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)