Dual agency is one of the most misunderstood and potentially risky situations in Massachusetts real estate. If you’re buying or selling a home on the North Shore, understanding how dual agency works — and what it means for your negotiating power — is essential before you hire an agent.
What Is Dual Agency in Real Estate?
Dual agency happens when one real estate agent — or agents from the same brokerage — represents both the buyer and the seller in the same transaction. On the surface, it may seem like a convenience. In practice, it creates a fundamental conflict of interest that most real estate attorneys and consumer advocates warn buyers and sellers to avoid.
Here’s the core problem: an agent in a dual agency situation cannot fully negotiate for you. They can’t tell you the seller’s bottom line. They can’t push back on an offer strategy that benefits the other party. They are legally required to be neutral — which means you don’t have an advocate.
Is Dual Agency Legal in Massachusetts?
Yes — dual agency is legal in Massachusetts, but it requires written disclosure and informed consent from both the buyer and the seller before the relationship is established. Massachusetts real estate law (MGL Chapter 112, Section 87AAA) requires agents to disclose their agency relationships at the first substantive contact with either party.
The key word is “informed” consent. You must understand what you’re giving up before you sign a dual agency consent form — which is why this guide exists.
When Does Dual Agency Happen?
The most common scenario on the North Shore: you’re a buyer scrolling listings, you call the number on the sign, and the listing agent picks up. They’re representing the seller. If you tour the property with them and decide to make an offer, you’ve entered dual agency territory — the same agent is now working with both sides.
This also happens within large brokerages under what’s called designated agency — two separate agents from the same firm, each theoretically representing one party, but with the brokerage itself representing both. Massachusetts allows this, but the brokerage’s interests are still divided.
Dual Agency Risks for Buyers
If you’re a buyer in a dual agency situation, your agent cannot:
- Tell you how motivated the seller is or how long they’ve been on market
- Advise you on how much below asking price you could realistically offer
- Disclose the seller’s bottom line or any personal circumstances affecting their timeline
- Negotiate aggressively on your behalf in a multiple-offer situation
Studies consistently show that buyers in dual agency transactions pay more than buyers with independent representation. That premium can easily exceed the commission savings the agent is supposedly “splitting.”
Dual Agency Risks for Sellers
If you’re a seller in a dual agency situation, your listing agent cannot:
- Probe the buyer for their true motivation, timeline, or highest price
- Advise you to counter aggressively or hold firm on price
- Advocate for your preferred contingency terms over the buyer’s
- Disclose that the buyer may be willing to come up significantly on price
The listing agent’s loyalty is compromised. Their job becomes facilitating the transaction — not getting you the best possible terms.
Post-NAR Settlement: How Dual Agency Has Gotten More Complex
Since the 2024 NAR settlement, buyer agent compensation is no longer automatically included in the listing commission. Buyers must negotiate their agent’s fee separately — which means the dual agency question has become more financially loaded than ever. When one agent represents both sides and earns commission from both, the financial incentive to close the deal — regardless of whose interests are best served — is even greater.
Understanding how agent commissions work post-NAR settlement →
How to Avoid Dual Agency
The simplest way to avoid dual agency: hire your own buyer’s agent before you start touring homes. Don’t call the listing agent’s number on the sign. Don’t use the “contact agent” form on Zillow that connects you to the seller’s representative. Establish your own representation first.
If you’re a seller, work with a listing agent who explicitly agrees not to represent buyers on your property — or who practices in a boutique setting where conflicts are less likely.
Ask these questions before hiring any real estate agent on the North Shore →
Does Daniel Meegan Practice Dual Agency?
Daniel Meegan avoids dual agency whenever possible. His practice is built around undivided representation — meaning when he’s your listing agent, he is 100% in your corner, and when he’s your buyer’s agent, he works exclusively for you.
In situations where designated agency becomes unavoidable under Massachusetts brokerage law, Daniel provides full written disclosure and a clear explanation of what changes in the relationship before proceeding. His goal is always to make sure his clients are the most informed people in the room.
North Shore MA Real Estate Dual Agency: City-Level Considerations
Dual agency situations are more common in competitive markets where limited inventory means buyers and sellers often encounter the same agents repeatedly. On the North Shore, this is especially true in:
- Beverly MA — high demand, limited inventory under $700K means popular agents often have both buyers and sellers in the market simultaneously
- Salem MA — a small downtown condo market where the same agents appear on both sides frequently
- Marblehead MA — a tight-knit luxury market where listing agents often receive calls from unrepresented buyers
In all these markets, having your own representation before you start looking protects you from the dual agency trap.
Get Fully Represented on the North Shore
Whether you’re buying or selling in Beverly, Salem, Swampscott, Marblehead, Peabody, or Lynn, Daniel Meegan provides undivided representation with the full expertise of a 20-year North Shore veteran.