Undisclosed Dual Agency
A situation where a real estate agent represents both the buyer and seller in a transaction without properly disclosing this dual representation to both parties. This creates a conflict of interest as the agent cannot fully advocate for either party's best interests while representing both sides.
Example
“The agent was sued for undisclosed dual agency after the buyer discovered she had been secretly representing the seller while claiming to work exclusively for them.”
Memory Tip
Think 'under the table dual dealing' - the agent is secretly serving two masters without telling either one.
Why It Matters
This practice is illegal in most states and can result in voided contracts, legal liability, and financial losses for both buyers and sellers who weren't properly informed of their agent's divided loyalties.
Common Misconception
Many people think dual agency is always illegal, but it's actually permitted in most states as long as it's properly disclosed and both parties consent in writing.
In Practice
If an agent shows you homes and later reveals they're also listing agent for a property you want to buy, but never disclosed this dual role upfront, this would constitute undisclosed dual agency. The agent should have informed you immediately upon showing their own listing.
Etymology
From Latin 'dis-' (apart) + 'claudere' (to close), literally meaning 'not closed apart' - referring to the failure to openly separate conflicting loyalties.
Common Misspellings
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