Is Dual Agency Still a Good Idea in This Market?
Pros & Cons for Buyers and Sellers in Los Angeles County
In the ever-changing Los Angeles real estate market, buyers and sellers often look for ways to simplify the process and close deals quickly. One strategy that occasionally comes up is dual agency—when one real estate agent represents both the buyer and the seller in the same transaction.
While this might sound convenient, it’s not always in the best interest of either party. In a competitive, high-stakes market like LA, where prices can change quickly and properties can receive multiple offers, is dual agency still a good idea? Let’s take a closer look from a real estate professional’s perspective and understand what’s legal in Los Angeles County.
What Is Dual Agency?
In real estate, dual agency refers to a situation where one agent—or brokerage—represents both the buyer and seller in the same transaction.
Here’s how it usually works:
- A listing agent signs a contract with the seller to market and sell the property.
- A buyer, who may not have their own agent, views the property and decides to work with the listing agent directly.
- That agent now represents both parties, often creating what’s known as a “dual agency” relationship.
In Los Angeles County, dual agency is legal under California law, but there are important disclosures that must be made to both parties. California Civil Code Section 2079.17 requires that both buyer and seller sign a written consent acknowledging the dual representation.
The Legal Requirements in California
In California—including Los Angeles—real estate agents must disclose agency relationships before starting any negotiation or transaction. Here’s what the law says:
- The agent must provide a written Disclosure Regarding Real Estate Agency Relationships.
- Both buyer and seller must give informed consent to dual agency in writing.
- The agent cannot share confidential information between the parties—such as a seller’s bottom line or a buyer’s maximum price—without written permission.
Brokers and agents must act honestly and fairly, but they cannot advocate for one side over the other in a dual agency situation. This neutrality can limit their ability to fully advise or negotiate for either client.
Dual Agency: A Closer Look for Sellers
As a seller in LA County, you’re likely focused on one thing: getting the best possible price and terms for your home. Here’s how dual agency could help or hurt:
Pros:
- Faster Transaction: One agent controlling both sides of the deal may speed up communication and reduce delays.
- Possibly Lower Commission: Some agents offer reduced total commission if they represent both sides—helping sellers save 1–2% on average.
- Direct Buyer Access: The listing agent already knows the property inside and out and can walk the buyer through the process smoothly.
Cons:
- Limited Advocacy: Your agent can’t advise you on offer strength, negotiate harder on price, or counter offers in your best interest.
- Risk of Undervaluation: If your agent is balancing both parties’ interests, you might settle for a lower price just to close the deal.
- Conflict of Interest: You may question whether the agent truly has your best interest at heart—or is just trying to double-end the commission.
Dual Agency for Buyers in Los Angeles
In today’s LA real estate market, buyers face intense competition, rising home prices, and fast-moving listings. Having a dedicated buyer’s agent is often essential. Still, some buyers agree to dual agency, especially when they don’t have an agent and connect directly with a listing agent.
Pros:
- Convenient Access: Buyers get direct information about the property from the agent who knows it best.
- Streamlined Process: The agent can coordinate showings, inspections, and paperwork for both parties without delay.
- Motivated Agent: Some buyers believe the dual agent may push for the deal to close, potentially favoring their offer.
Cons:
- No Negotiation Advice: The agent can’t legally suggest how much to offer, whether to ask for repairs, or how to win in a bidding war.
- No Fiduciary Loyalty: In dual agency, the agent’s duty is split. That means buyers don’t have a true advocate in their corner.
- Higher Risk of Overpaying: Without an agent providing comparable property data or market analysis, buyers may offer too much.
How the LA Market Impacts Dual Agency
In Los Angeles, real estate is highly competitive and often moves quickly. As of 2025, trends like higher interest rates, lower inventory in some neighborhoods, and increased buyer demand are making single-agent transactions riskier for both sides.
- Multiple offers are still common in hot areas like West LA, Santa Monica, or Pasadena.
- Buyers often need aggressive, strategic representation.
- Sellers may be leaving money on the table without a strong negotiator advocating for their interests.
Because of these factors, many top real estate professionals in LA discourage dual agency unless it’s absolutely necessary.
When Might Dual Agency Make Sense?
While it’s generally safer to have your own representation, there are a few cases where dual agency may still work:
- You’re buying/selling with someone you already know (e.g., family or friends)
- The property is off-market and not listed on the MLS
- Both parties are experienced investors who understand the risks
- The agent is only facilitating the paperwork, and both sides have legal counsel
In these cases, a dual agency setup can save time and money—if everything is disclosed properly and both sides understand the trade-offs.
Tips for Buyers and Sellers Considering Dual Agency
If you’re in LA County and thinking about working with one agent for both sides, here are some smart tips:
1. Ask About Agency Disclosure Early
Your agent is required by California law to explain their role. Don’t skip this step.
2. Consider a Transaction Coordinator
If you’re doing dual agency for convenience, ask the agent to hire a licensed transaction coordinator to handle documents and timelines fairly.
3. Hire a Real Estate Attorney
Having a lawyer review contracts and guide you through the legal side of the deal can protect your interests.
4. Make Sure You Understand the Limits
Ask: What can you tell me? What can’t you tell me? Agents in dual roles can’t give confidential advice to either side.
Real-Life Example in LA
Let’s say you’re selling your home in Sherman Oaks, and a buyer walks into your open house without an agent. They love the home and ask the listing agent to write an offer.
The listing agent now becomes a dual agent. They must:
- Disclose dual agency in writing
- Avoid favoring either party
- Not share confidential info (like the buyer’s max price or seller’s bottom line)
If that buyer asks, “How much should I offer?”—the agent legally can’t answer. That’s where dual agency becomes challenging.
Conclusion: Is It Worth It in 2025?
In a market as competitive and complex as Los Angeles, having your own real estate agent is often the safer choice. While dual agency is legal in California and may offer some convenience, it comes with serious limitations and potential conflicts—especially when large sums of money and legal documents are involved.
For sellers:
If your goal is to get top dollar and navigate multiple offers, it’s best to have someone fully on your side.
For buyers:
If you want someone to advocate for you, negotiate on your behalf, and explain the process, a buyer’s agent is essential.
Final Thought
Dual agency might sound simple—but it’s not always in your best interest. Before agreeing to it, understand what you’re giving up, ask the right questions, and know your rights under California law.
In the end, having dedicated representation can save you time, money, and stress—especially in a high-stakes market like Los Angeles.
Rana Real Estate Group is a trusted name in real estate, offering expert assistance for all your property needs. Whether you’re buying, selling, or investing, their experienced team provides tailored solutions and personalized service to help you achieve your goals. With a focus on integrity and transparency, they guide you through every step of the process, ensuring a smooth and successful transaction. Whether you’re a beginner or seasoned in real estate, Rana Real Estate Group is here to support you every step of the way.
Rana Khanjani, MBA
Specializing in Commercial, Residential, and Land