Key Takeaways
- Disclosed dual agency is permitted in Missouri with written informed consent from both parties
- In dual agency, the agent must be neutral and cannot advocate for either party over the other
- Transaction brokerage is an alternative to dual agency where the licensee facilitates without representing
- Dual agency disclosures must be made in writing and signed by all parties
- Failure to disclose dual agency may result in disciplinary action by MREC
Dual Agency and Transaction Brokerage
Missouri permits disclosed dual agency and offers transaction brokerage as an alternative approach for in-house transactions.
Disclosed Dual Agency
A disclosed dual agent is a licensee who:
- Represents both buyer and seller in the same transaction
- Has written informed consent from both parties
- Cannot advocate for one party over the other
- Maintains impartiality between parties
When Dual Agency Occurs
Dual agency typically occurs when:
| Situation | Result |
|---|---|
| Buyer client wants to buy agent's listing | Dual agency (with consent) |
| Two agents in same brokerage represent buyer and seller | Company dual agency |
| Same agent represents both parties | Individual dual agency |
Missouri Dual Agency Requirements
Written Consent Required
MREC requires that real estate agents disclose to all parties if they are acting as a dual agent:
| Requirement | Details |
|---|---|
| Written disclosure | Must be in writing |
| All party signatures | Both buyer and seller must sign |
| Before acting | Consent before dual agency begins |
| Explain limitations | Must explain limits on advocacy |
Warning: Failure to disclose dual agency may result in disciplinary action by the Real Estate Commission.
Dual Agent Duties
The dual agent:
| Must Do | Cannot Do |
|---|---|
| Treat both parties fairly | Disclose confidential information |
| Act in good faith | Advocate for one party |
| Disclose material facts | Reveal negotiating strategy |
| Follow lawful instructions | Favor one party's interests |
Transaction Brokerage Alternative
Missouri offers transaction brokerage as an alternative to dual agency:
Transaction Broker Role
| Feature | Transaction Broker |
|---|---|
| Representation | None (facilitates only) |
| Advocacy | Cannot advocate for either party |
| Fiduciary duties | None (limited duties only) |
| Confidentiality | Must maintain for both parties |
When to Use Transaction Brokerage
Consider transaction brokerage when:
- Parties want assistance without representation
- Avoiding conflicts of dual agency
- Neither party wants an advocate
- Facilitating in-house transactions
Transaction Broker Duties
Transaction brokers must:
| Duty | Description |
|---|---|
| Honesty | Be truthful with all parties |
| Fairness | Treat all parties fairly |
| Disclosure | Reveal material facts |
| Competence | Perform services competently |
| Accounting | Account for all funds |
Comparison: Dual Agency vs. Transaction Brokerage
| Feature | Dual Agency | Transaction Brokerage |
|---|---|---|
| Representation | Both parties | Neither party |
| Fiduciary duties | Limited | None |
| Written consent | Required | Recommended |
| Advocacy | Neutral | Not applicable |
| Confidentiality | For both parties | For both parties |
Confidentiality in Dual Agency
Pre-Dual Agency Information
Information learned before becoming a dual agent:
- Remains confidential
- Cannot be disclosed without permission
- Must be protected even during dual agency
What Must Be Disclosed
Even as a dual agent, the licensee must disclose:
- Known material defects
- Property condition issues
- Environmental hazards
- Information required by law
What is required before a Missouri licensee can act as a disclosed dual agent?
What could result from failure to disclose dual agency in Missouri?