What Is Dual Agency? The Risks and New York’s Rules
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Dual agency occurs when a real estate broker represents both the buyer and the seller in the same transaction. New York allows it, but only with the informed written consent of both parties, because a dual agent can’t negotiate or advise on behalf of either side. About 8 states ban it outright.
Nicole was a lawyer before NestApple, and she doesn’t practice now, but she has a firm view here. A single agent can’t serve two masters in a deal where they want opposite things.
The short version: it’s legal in New York, it’s a real conflict, and there’s a cleaner alternative.
| Dual agency | Designated agency | |
|---|---|---|
| Who represents you | One agent, both sides | A different agent from the same brokerage |
| Can they advise on the price | No | Yes, for their own client |
| Full fiduciary duty | No | Still not the full range, per NY form |
| Consent needed | Informed, in writing, both parties | Informed, in writing, both parties |
What is dual agency?
It means one agent working with two clients with a straight face. It happens when the person listing a home also brings the buyer. It also happens when a listing agent agrees to “also represent” a buyer who called about the property.
New York’s law defines it plainly. A dual agent is “an agent who is acting as a buyer’s agent and a seller’s agent in the same transaction.”
The problem is structural. For example, a buyer wants the lowest price. A seller wants the highest. One person can’t push for both.
Is dual agency legal in New York?
Yes, with consent. New York lets you agree to it, then spends a whole page talking you out of it. The NYS Disclosure Form for Buyer and Seller has a checkbox for dual agency and a paragraph explaining what you give up.
The form’s own words: “By consenting to the dual agency relationship, the buyer and seller are giving up their right to undivided loyalty.” It also warns that the agent “will not be able to provide the full range of fiduciary duties.”
The state’s Department of Justice guidance, Legal Memorandum LI12, is titled “Be Wary of Dual Agency.” That’s not a neutral headline. This mandatory-disclosure regime has been in force since January 1, 2011.
If you want an agent who is always on your side, plus a rebate, see what NestApple returns to buyers and price a deal using our closing-cost calculators.
Dual agency vs designated agency
The designated agency is the workaround. It puts a different agent from the same brokerage on each side, with one very careful lunch table.
With both parties’ written consent, a broker representing both parties assigns a different licensed salesperson to each party. Your designated agent can advise you on pricing and negotiate on your behalf with the seller’s designated agent.
It’s better, not perfect. New York’s form still says a designated agent “cannot provide the full range of fiduciary duties.” In a large NYC brokerage, this is the everyday situation, so it’s worth knowing which one you’re in.
Which states ban dual agency
Roughly eight, and the lists disagree, which tells you how casually people cite them. The commonly repeated list is Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont and Wyoming. Some sources swap Oklahoma for Maryland.
Some of the mechanics differ by state:
- Colorado abolished statutory dual agency in 2003 and uses a transaction-broker model
- Florida law presumes transaction brokerage under section 475.278
- Texas uses a broker “intermediary” model
- Alaska allows a “neutral licensee” instead
New York is not on any ban list. Both dual agency and designated agency are expressly authorized by Real Property Law section 443.
Dual agency pros and cons
The only pro is convenience: one point of contact and a possibly faster close. The con is the one that matters. Your agent goes quiet exactly when you need advice.
A dual agent can’t tell the buyer that the seller would take less. They can’t tell the seller the buyer would pay more. On the two questions that decide the deal, they say nothing.
There’s a real case behind the worry. In 2022, a class action against the Westchester brokerage Houlihan Lawrence was certified, alleging that the firm steered clients into in-house deals in which it acted as an undisclosed dual agent.
Since January 13, 2025, an REBNY member must sign a written buyer agency agreement with you before any showing. So if a listing agent offers to also represent you, you should already have paperwork defining your own representation. This page is part of our guide to NYC commissions and rebates.
Why we won’t do it
The double commission is the only argument for it, and it’s the wrong person’s argument. A broker who represents both sides collects the buyer-side and seller-side fees. That incentive belongs to the broker, not to you.
We run deals as a co-broke with a second firm, or we decline the listing. If you want a broker who is always on your side, plus a rebate, see what NestApple returns to buyers and price a deal using our closing-cost calculators.
Common questions
Is dual agency legal in New York? Yes, but only with the informed written consent of both the buyer and the seller. The NYS Disclosure Form has a checkbox for it and a paragraph on what you give up.
What’s the difference between a dual and a designated agency? A dual agent represents both sides and can’t advise either. The designated agency assigns a separate agent from the same brokerage to each side, so each client keeps an advocate.
Which states ban dual agency? About eight, commonly listed as Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming. The lists in circulation disagree on a couple of them.
Should I agree to dual agency? It removes your advocate on price and negotiation. If a listing agent offers it, you can decline and instead keep your own separate representation.
Nicole Fishman Benoliel co-founded NestApple in 2017. She's a lawyer admitted to the New York bar - her law degree is from La Escuela Libre de Derecho in Costa Rica, with further study at IE Business School in Madrid and an LLM from Fordham in New York. She does not act in a legal capacity at NestApple; every client is referred to an attorney who handles real estate deals full time.
