If Dual Agency is not disclosed, is a commission due?

In the context of dual agency, it is essential for agents to disclose their dual agency status to all parties involved in the transaction. This disclosure is crucial because failing to inform clients that an agent is representing both the buyer and the seller creates a conflict of interest and undermines the fiduciary duties that agents owe to their clients.

When dual agency is not disclosed, the agent is not merely in violation of ethical guidelines, but also risks losing the right to receive a commission. This is because the commission is typically contingent on the agent's ability to act in the best interests of their clients, which cannot be effectively achieved without full transparency regarding their representation. Thus, without the necessary disclosure, the commission may not be owed since clients have not been given the opportunity to consent to this arrangement, which is fundamental in real estate transactions.

This understanding emphasizes the importance of transparency and honesty in real estate dealings, ensuring that clients are fully informed so they can make decisions in their best interest. Disclosures are not just legal formalities; they are foundational to a trustworthy agent-client relationship.