Key Takeaways
- Dual agency in Washington requires written consent from both buyer and seller
- A dual agent cannot advocate for either party and must remain neutral
- Dual agency typically occurs when the same firm represents both parties
- The dual agent must disclose the dual agency relationship before it occurs
- Confidential information from one party cannot be disclosed to the other without permission
Dual Agency in Washington
Dual agency occurs when a broker represents both the buyer and seller in the same transaction. Washington permits dual agency with specific requirements.
When Dual Agency Occurs
Dual agency can occur when:
| Situation | Description |
|---|---|
| Same broker | One broker represents both parties |
| Same firm | Different brokers at the same firm represent different parties |
| Disclosed and consented | Both parties agree in writing |
Requirements for Dual Agency
1. Disclosure
Before acting as a dual agent, the broker must:
- Disclose the dual agency situation to both parties
- Explain the limitations of dual agency
- Obtain written consent from both parties
2. Written Consent
Both parties must provide written consent to dual agency:
- Consent must be informed (understand limitations)
- Consent should be documented
- Consent can be included in the agency agreement
Dual Agent Limitations
A dual agent CANNOT:
| Prohibited Actions |
|---|
| Advocate for one party over the other |
| Disclose confidential information from one party to the other |
| Advise one party on negotiating strategy against the other |
| Recommend a price to one party that disadvantages the other |
A dual agent CAN:
| Permitted Actions |
|---|
| Perform ministerial acts for both parties |
| Present offers and counteroffers |
| Provide factual information about the property |
| Coordinate transaction details |
Key Point: The dual agent becomes a neutral facilitator, not an advocate.
Confidentiality in Dual Agency
What Cannot Be Disclosed
Without written permission, a dual agent cannot reveal:
| To Buyer | To Seller |
|---|---|
| Seller's minimum acceptable price | Buyer's maximum offering price |
| Seller's motivation to sell | Buyer's motivation to buy |
| Why seller needs to sell quickly | Buyer's urgency to purchase |
| Seller's willingness to accept terms | Buyer's ability to pay more |
Information That CAN Be Disclosed
| Information | Can Disclose? |
|---|---|
| Material facts about property condition | Yes |
| Facts required by law | Yes |
| Information authorized by the party | Yes |
| General market conditions | Yes |
Firm-Level Dual Agency
When different brokers at the same firm represent different parties:
How It Works
- Broker A represents Seller (listing broker)
- Broker B represents Buyer (buyer's broker)
- Both brokers work for the same firm
- Firm is in dual agency position
Supervision Considerations
- Designated broker must manage conflicts
- Information barriers may be appropriate
- Written policies should address firm dual agency
- Each broker still owes duties to their client
Avoiding Dual Agency
Parties who want to avoid dual agency can:
| Option | Description |
|---|---|
| Seek separate firms | Buyer and seller use different firms |
| Decline dual agency | Either party can refuse consent |
| Request different broker | Within same firm (still firm dual agency) |
| Work with designated broker guidance | Follow firm policies |
Best Practice: Explain dual agency limitations early so clients can make informed decisions about whether to consent.
What is required before a Washington broker can act as a dual agent?
Which of the following CAN a dual agent do in Washington?