You signed the paperwork, and somewhere in the fine print your agent disclosed they were representing both you and the seller — or both you and another buyer. This is called dual agency, and while it’s legal in California, it comes with real risks buyers often don’t fully understand until something goes wrong.
What dual agency actually means
Dual agency happens when the same real estate brokerage — sometimes even the same individual agent — represents both the buyer and the seller in the same transaction. California allows this, but only with informed, written consent from both parties. The agent is still supposed to act as a fiduciary to both sides, which is a difficult, sometimes impossible, balancing act.
Why it’s risky for buyers
A dual agent legally can’t fully advocate for you the way a buyer’s-only agent can. They can’t, for example, tell you what the seller’s true bottom-line price is, or advise you too aggressively about problems with the property, without potentially violating their duty to the seller. In practice, this means:
- You may get less candid advice about negotiating price or requesting repairs
- The agent has a financial incentive to see the deal close — they earn a commission either way, and a full commission (or close to it) if they represent both sides
- Red flags the agent may have observed can get downplayed rather than raised, to avoid jeopardizing the deal
Your consent must be informed
Dual agency isn’t automatically improper — but your consent to it must be real, informed consent, not a signature buried among a stack of disclosure forms you didn’t have explained to you. If you didn’t understand what dual agency meant, what it limited the agent from doing for you, or you felt pressured to sign, that consent may not hold up.
Signs dual agency created a problem in your transaction
- The agent discouraged you from getting an independent inspection, or rushed you through inspection contingencies
- The agent didn’t flag something they clearly should have known about the property
- You later learned facts about the property’s condition that the agent likely knew but never told you
- You felt pushed toward closing rather than advised objectively
What you can do
If you believe dual agency compromised the advice or disclosures you received, you may have a breach of fiduciary duty claim, separate from any claim against the seller directly. Depending on the facts, remedies can include damages tied to the agent’s breach and commission disgorgement — the agent giving back some or all of the commission they earned.
How to protect yourself going forward
If you’re currently shopping for a home and are offered dual agency (or are already in a dual agency arrangement), ask direct questions: what exactly can and can’t the agent tell you, and are you comfortable with those limits? You’re also entitled to request separate representation.
How Jimmy can help
As both a real estate attorney and a licensed broker in California and Nevada, Jimmy Nguyen understands dual agency from the inside — how it’s supposed to work, and how it sometimes doesn’t. If something about your transaction felt off, it’s worth a conversation.
Call 408.645.0606 or email jimmy@lawjn.com for a free case evaluation.