Dual agency is when one broker (or brokerage) represents both buyer and seller in the same transaction. Common in LA multifamily but creates inherent conflicts of interest.
California requires dual agency disclosure in writing with both parties' informed consent. The broker's fiduciary duties to each party are limited in a dual-agency scenario — cannot advocate fully for either side. Some transactions use "designated agents" within a single brokerage to mitigate the conflict.
Dual agency is common when institutional buyers engage well-known LA multifamily brokers who also work with sellers. For sellers, understand the conflict before signing. Sellers who want full advocacy should consider dedicated seller representation with separate buyer-side representation.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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