What is dual agency in real estate?
Dual agency is when a single real estate brokerage represents both the buyer and the seller in the same property transaction, requiring written disclosure and informed consent from both parties under Ontario law.
In a dual agency arrangement, one brokerage acts on behalf of both the buyer and seller during the same real estate transaction. This differs from the typical transaction model where separate brokerages represent each party.
Ontario's Real Estate Services Act requires that dual agency arrangements be disclosed in writing to both clients before any representation begins. Both the buyer and seller must provide informed written consent to proceed under this structure. The brokerage must disclose the conflict of interest and confirm that both parties understand the implications of shared representation.
Dual agency creates a potential conflict because the same firm has competing interests: maximizing the sale price for the seller while minimizing it for the buyer. Ontario regulators acknowledge this tension, which is why the disclosure and consent requirements exist. Some clients prefer dual agency because it can simplify the transaction process or reduce commission costs, while others avoid it to ensure undivided loyalty from their representative.
If you are considering working with a brokerage, ask directly whether they represent both sides of a transaction. Licensed agents must comply with disclosure rules, and understanding this arrangement upfront helps you make informed decisions about representation. When exploring residential sales providers in London, Ontario, clarify their policies on dual agency and what protections exist for your interests.