What is dual agency in real estate?
Dual agency occurs when one real estate brokerage represents both the buyer and the seller in the same transaction, permitted in Ontario only with full written disclosure and informed consent from both parties.
In Ontario real estate transactions, dual agency happens when a single brokerage represents both the buyer and the seller. This creates a potential conflict of interest because the brokerage's commission depends on the deal closing, which may not align perfectly with each party's individual financial interests.
Under the Travel and Representation Services Act (TRESA) and Real Estate Services Act regulations, dual agency is allowed but heavily restricted. Before entering into a dual agency relationship, the brokerage must provide written disclosure to both parties explaining the conflict and their obligations. Both the buyer and seller must then give informed, written consent. This consent cannot be obtained under pressure or as a condition of showing a property.
The key difference between dual agency and other representation structures matters because Ontario requires brokerages to disclose their role clearly. A brokerage cannot represent one party as a seller's agent, then suddenly switch to representing the buyer as a buyer's agent in the same transaction without disclosure. If you work with a residential sales agent or brokerage, ask directly about their representation model to understand whether dual agency is being proposed and what protections exist for your interests.