A “dual agency” relationship occurs when a buyer is being represented by a brokerage firm that controls the listing. Once an agent represents both the seller and the buyer within the same transaction, the situation is known as “dual agency.” This is legal in New Hampshire and should a buyer agent show you their own listing, the buyer and seller must be notified in advance. All agents hold the same responsibility, which is to inform their clients of all potential risks that could arise due to conflicts of interest. Legally, agents are not allowed to work on both sides of any transaction without consent from all clients. If this scenario occurs, the agent must then become a facilitator for both parties. The agent can prepare the paperwork but is not allowed to advise either of the parties in the negotiations. You can see how this can become a delicate situation and this type of agency is not allowed in some states. If you’re selling your home and you don’t want your agent to also work with the buyer of your home, it’s your right to say so in the listing agreement. This is also true for buyers. A buyer can get out of an agreement with an agent if they are interested in purchasing a home their agent is listing. When it comes to dual agency, there are definite advantages for the seller. • Trust has already been gained with your listing agent, so representation for the buyer has been established. • The agent knows how strong the buyer and first-hand knowledge of their financing. • It's often a smoother transaction with only one agent involved. • Your listing agent will have already covered and researched your neighborhood’s market to gain buyer 13
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