Is Dual Agency Legal?

Most home buyers are surprised to learn that most Realtors® are more focused on the interests of the seller. Dual agency doesn't seem like it should be legal.

And, up until the 1990s, it generally wasn't. But, following a test case in Ohio, the legality of dual agency has become accepted in most of the United States.

In the Ohio case, lobbyists working for large listing firms, as well as the Ohio Association of Realtors®, pushed for favorable legislation. Acting in 1996, Ohio state legislators addressed the legality of "designated agency", making it legal to represent both sides in a real estate transaction.

Similar action by lobbyists and trade groups also reversed the law in Maryland, Virginia, the District of Columbia and other states where dual agency had been illegal before the 1990s.

These days, dual agency is legal in most of the United States, including Minnesota. As of 2004, Colorado, Florida and Kansas are the only states where dual agency is not legal. Most states require appropriate disclosure, but - as many home buyers might attest - there is a fair amount of room for interpretation as to what is "appropriate."

Ultimately, whether or not agents adequately disclose their dual agency makes little difference to the home buyer. That a real estate agent reveals that he or she is obligated to serve the interests of the seller, after all, provides very little comfort to the home buyer.

Despite dual agency's legality - and with or without disclosure - the one way for home buyers to ensure that their interests are being fully represented is to contact The Home Buyers, Inc.