Lesson 4: Dual Agency in Maryland

Abuse of Dual Agency

Though collecting the full commission avoiding the hassle of long negotiations is an attractive proposition, licensees must be careful to avoid abusing dual agencies. One of the greatest pitfalls of a dual agency is the conflict of interest. Put simply, agents are motivated to side with the seller in a transaction, rather than representing both parties properly—thus winning a greater commission for a higher sales price. For exactly this reason, dual agency is illegal in some states. It’s legal in Maryland, so agents have to be careful to fairly represent those they work with.

Sharing Client Information

One of the dangers of sharing confidential client information is that even sharing it with anyone, even agents in the same brokerage, can similarly weaken a buyer’s or seller’s negotiating position. This confidentiality includes a client’s motivation for buying or selling, their negotiation strategy, financial situation, and marketing tactics, among other things. 

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What are the greatest drawbacks of double agency?