I’m often asked, “What exactly is dual agency in real estate?” by both buyers and sellers here in Montana. And as you’ll see, I have strong feelings on the subject because your representation matters.
By definition, dual agency means that one real estate agent represents both the buyer and the seller in the same transaction. In Montana, this is legal only with written informed consent from both parties, and it comes with strict limitations on what the agent can and cannot do.
Here’s an example. Let’s say I’m representing the sellers of 123 Main Street in Whitefish. I’ve advised them on pricing strategy, staging, timing, marketing, and everything needed to position their home competitively. I’ve met their kids, snuck treats to their dogs, and invested deeply in helping them reach their financial goals.
Separately, I meet you as a buyer searching for the right home in the Flathead Valley. We tour properties together, talk through your financial comfort zone with your lender, and get clear on what truly matters to you. One of the homes you fall in love with happens to be 123 Main Street. It’s your dream home.
The problem is that at this point, I now know confidential information about both you and the seller. In Montana, if both parties sign off, I could legally act as a dual agent. But here’s the issue: a dual agent cannot advocate for either side. I cannot advise you on what to offer. I cannot advise the seller on how to respond. I cannot negotiate on your behalf. I cannot push for better terms for either of you.
But you didn’t hire me to be neutral. You hired me to protect your interests, strategize, and negotiate on your behalf. And I can’t do that for both sides at once. No one can. Even Montana’s agency guidelines acknowledge the limitations and risks inherent in dual agency.
This is why I do not practice dual agency. In my professional opinion, it creates an unavoidable conflict of interest. You deserve full representation, not half of it. If I’m representing a seller and a buyer wants to write an offer, I will refer that buyer to another trusted agent who can negotiate solely for them. Yes, that means I give up part of my commission. But doing the right thing for my clients is non-negotiable.
Here is an article that explains dual agency clearly and aligns with the concerns I’ve outlined https://realestateu.com/dual-agency-real-estate-explained/
