Dual agency occurs when a buyer's agent shows the buyer a listing held by the agent's real-estate firm. Dual agency is a little tricky because the agent has responsibilities to both parties. The agent cannot disclose personal information to either client about the other, but must still be careful to make sure the needs of both clients are met.

Dual agency is usually easier to deal with if the buyer is not working with the agent who actually holds the listing for the property. Many real-estate offices are so accustomed to handling dual agency that they encourage their agents not to chatter about the personal business of their clients. Then, when dual representation occurs, only the listing agent is privy to personal information.

Dual agency is not allowed in all states. Where it is allowed, it must typically be disclosed to the buyer and seller in advance, and both must agree to it in writing.