Also known as: dual agents · dual agency · dual representation
Written by attorneys · grounded in primary & secondary sources — see below
An agent who acts for two principals in a transaction between them. The agent owes each principal a duty of fairness and must disclose all facts the agent knows or should know would reasonably affect that principal's judgment about permitting the dual role, unless a principal has manifested knowledge of those facts or indifference to them.
Danielle Dixon agreed to broker the sale of a sculpture between Derek Douglas, a private collector, and Delta Dynamics, a museum. Both knew she acted for the other. Before obtaining consent, Danielle learned of prior appraisals and the museum's internal acquisition cap but withheld both facts. The museum later sued for breach after discovering the omissions.
Denise Donovan contracted to buy commercial property from Dwight Dorsey. Both parties agreed that Dawson Steel Brokers would serve as limited dual agent and hold the earnest money deposits in trust. The broker released the funds to the seller upon closing without notifying the buyer that the seller had not yet acquired clear title from a third party.
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No. Consent to dual representation does not waive the agent's ongoing duty to act fairly toward each principal and to disclose facts that would reasonably affect each principal's judgment about permitting the dual role.
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The agent must reveal all facts known or reasonably knowable that would affect a principal's decision to allow the dual role, such as prior appraisals, acquisition caps, alternative options, or each side's pricing expectations and timing pressures.
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No. Dual agency is permitted when both principals know of the arrangement and the agent satisfies the duties of fairness and disclosure. The prohibition applies only when the agent acts for an adverse party without the principal's knowledge.
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No. Once the agent undertakes representation of both sides with their knowledge, the agent owes the same duties of fairness and disclosure to each principal independently.
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