What Is Dual Agency in California Real Estate?

Dual agency exists when the same real estate broker represents both the buyer and the seller in one transaction. It also exists, less obviously, when the buyer and seller work with different salespersons who hang their licenses at the same brokerage, because the fiduciary duty belongs to the brokerage itself. The California Supreme Court confirmed that rule in Horiike v. Coldwell Banker.

California permits dual agency only with disclosure on the statutory agency forms and the informed written consent of both parties. The statute draws one hard line: without express written permission, a dual agent may not tell the buyer the seller will accept less than the listing price, and may not tell the seller the buyer will pay more than the offer. An undisclosed dual agency is a fiduciary breach from the outset and can cost the broker the entire commission.

The structural problem never goes away: one fiduciary cannot negotiate hard for two opposing principals. Disputes tend to involve leaked price confidences, concealed defects, and same-firm deals where information never crossed the hallway.