Navigating Dual Agency in Real Estate: Best Practices in the Era of Rising Private Exclusives
The real estate landscape has undergone seismic shifts in 2025, and nowhere is this more evident than in how agents navigate dual agency relationships. With the National Association of Realtors (NAR) settlement implementation in August 2024 and the expansion of private exclusive listings, agents face both unprecedented challenges and opportunities in representing multiple parties to a transaction.
If you’re a real estate professional working with buyers and sellers, understanding these changes isn’t just about compliance—it’s about building trust and positioning yourself as an ethical advisor in an increasingly complex marketplace.
Understanding Dual Agency in Today’s Market
Dual agency occurs when a single real estate agent or brokerage represents both the buyer and seller in the same transaction. While this arrangement can streamline communication and potentially reduce costs, it creates inherent conflicts of interest that require careful navigation and full disclosure.
The traditional dual agency model was straightforward: one agent, two clients, divided loyalty. But the 2024 NAR settlement fundamentally changed commission structures and transparency requirements, making dual agency scenarios more intricate.
The NAR Settlement Impact on Dual Agency
The NAR settlement, which took effect in August 2024, introduced practice changes that directly influence dual agency dynamics:
Key Changes:
- Offers of buyer agent compensation can no longer be displayed on Multiple Listing Services (MLS)
- Buyers must sign written agreements with their agents before property tours
- Commission negotiations have shifted from more standardized offerings to required case-by-case discussions
These changes have created an environment where more buyers may approach transactions without dedicated representation—or where they’re more likely to work with the listing agent. Industry watchers predict this could lead to increased dual agency scenarios, making it critical for agents to understand proper protocols.
Private Exclusives: Dual Agency Behind the Scenes
Perhaps the most significant development affecting dual agency in 2025 is the expansion and increased promotion of private exclusive listings—properties marketed off-MLS through brokerage-specific networks or agent-to-agent sharing.
What Are Private Exclusives?
Private exclusives (also called “office exclusives” or “pocket listings”) are properties that sellers choose not to list on the MLS. These homes are marketed through:
- Internal brokerage networks
- Agent-to-agent direct sharing
- Private listing books or digital platforms
- Selective disclosure to qualified buyers
Compass, the nation’s largest residential brokerage by sales volume, made headlines in May 2025 by launching the Compass Private Exclusives Book—a physical and digital collection of off-MLS properties accessible to agents from all brokerages who visit Compass offices. Further, Compass’ impending purchase of Anywhere Real Estate is expected to further accelerate the proliferation of ‘private exclusives’.
Why Private Exclusives Matter for Dual Agency
The growth of private exclusives creates unique dual agency considerations:
1. Limited Buyer Pool Access When properties aren’t widely marketed, fewer buyers see them—increasing the likelihood that the listing agent will also represent the buyer who ultimately purchases the property.
2. Information Asymmetry Agents with exclusive access to private listings hold valuable market information that creates potential conflicts when representing both parties.
3. Transparency Concerns Critics argue that private exclusives can limit market exposure and may disadvantage sellers seeking maximum value, while simultaneously reducing choices for buyers without connections to specific brokerages.
4. Fair Housing Implications There’s ongoing discussion about whether private exclusive networks could inadvertently create barriers for certain buyer demographics, making compliance and accessibility critical considerations.
Best Practices for Navigating Dual Agency
The intersection of NAR settlement changes and private exclusive growth demands updated best practices. Here’s your comprehensive guide to navigating dual agency ethically.
1. Master the Disclosure Requirements
Full, clear, and timely disclosure isn’t optional—it’s the foundation of ethical dual agency.
What to Disclose:
- The dual agency relationship itself, before any substantive discussions
- Limitations on your ability to advocate for either party’s best interests
- How your compensation structure works in the transaction
- Any brokerage policies regarding dual agency or designated agency
Dual Agency: A single agent (or brokerage without separate agent designation) represents both the buyer and seller in the same transaction, requiring the agent to maintain strict neutrality and limiting their ability to advocate for either party’s best interests.
Designated Agency: Different agents within the same brokerage are assigned to represent each party separately, allowing each agent to fully advocate for their respective client’s interests while keeping the transaction in-house at the brokerage level.
When to Disclose: Disclosure should occur at the earliest possible moment—ideally before showing properties or discussing specific terms. Many states require written consent before dual agency can proceed.
How to Disclose: Use clear, jargon-free language. Don’t just hand over forms; have a conversation. Explain what dual agency means in practical terms: “I can facilitate the transaction and provide market information, but I cannot advocate for your interests over the other party’s interests.”
2. Understand State-Specific Regulations
Dual agency legality and requirements vary dramatically by state. Some states prohibit it entirely, while others permit it with specific disclosures.
States that prohibit dual agency: Alaska, Colorado, Florida (with exceptions for transaction brokers), Kansas, Maryland, Oklahoma, Texas (with limited exceptions), Vermont, Wyoming
States requiring designated agency: Several states mandate that when a brokerage represents both parties, separate agents within the firm must represent each client (called “designated agency”). This arrangement provides clearer advocacy while keeping the transaction in-house. Others allow dual agency with strict rules (California requires specific disclosure forms, New York mandates informed consent in writing)
Consult your state’s real estate commission website and consider joining professional networks that provide updates on regulatory changes. The National Association of Realtors and your state realtor association are valuable resources.
3. Navigate Private Exclusives with Transparency
If you’re leveraging private exclusive networks, implement these protocols:
For Listing Agents:
- Have honest conversations with sellers about the pros and cons of off-MLS marketing
- Document the seller’s informed decision to use private exclusive marketing
- Explain that limiting exposure may affect price and time on market
- Provide data comparing private exclusive performance to MLS listings in your market
- Make it clear how you’ll share the listing with other agents (e.g., through platforms like Compass Private Exclusives Book)
For Buyer’s Agents:
- Inform buyers about private exclusive opportunities and how to access them
- Explain that private exclusives may offer less competition but potentially higher prices
- Disclose if your brokerage has its own private exclusive inventory
- Never present a private exclusive as the “only option” for a buyer when comparable MLS properties exist
When Representing Both Parties: If you list a private exclusive and a buyer you’re working with shows interest, pause and evaluate carefully. Consider referring the buyer to another agent in your brokerage (designated agency) or obtaining explicit written consent for dual agency with full disclosure of the limitations.
4. Implement a Designated Agency Model When Possible
Many brokerages and agents are moving toward designated agency as the preferred alternative to dual agency. In this model:
- The brokerage represents both parties
- Different agents within the brokerage represent each client
- Each agent can fully advocate for their client’s interests
- Information doesn’t flow between the two agents unless disclosed
This model provides clearer fiduciary responsibilities while keeping the transaction in-house. If your brokerage doesn’t already have a designated agency protocol, consider proposing one to your broker.
5. Leverage Technology for Transparency
Modern real estate technology can help manage dual agency complexities:
Transaction Management Software: Use platforms that clearly document all disclosures, communications, and consent forms with timestamps and e-signatures. ie. DotLoop
Communication Platforms: Consider separate communication channels for buyer and seller clients to avoid confusion and ensure confidentiality.
CRM Systems: Tag potential conflicts early in your client management system so you can proactively address dual agency situations before they develop. Related article: The Ultimate Guide to CRM Platforms for Real Estate Agents
AI-Powered Compliance Tools: Several emerging platforms like Callidus use AI to flag potential dual agency conflicts and prompt proper disclosure procedures.
6. Establish Clear Internal Policies
Whether you’re a solo agent or part of a team, having documented policies prevents confusion:
Create policies for:
- When you will and won’t accept dual agency engagements
- How you’ll handle commission negotiations in dual agency scenarios
- Communication protocols to maintain appropriate boundaries
- Documentation requirements beyond state minimums
- Referral procedures when dual agency isn’t appropriate
Sample Policy Statement: “Our brokerage prioritizes client advocacy. When we represent both parties in a transaction, we implement designated agency, assigning separate agents to each client. In rare cases where dual agency is necessary, we obtain written informed consent and limit our role to facilitating the transaction rather than negotiating on behalf of either party.”
7. Educate Your Clients Continuously
Don’t assume clients understand agency relationships just because they signed a disclosure form.
- Create simple one-page explainers about dual agency, designated agency, and exclusive representation
- Use visual diagrams showing information flow in different agency scenarios
- Share case studies (anonymized) showing how different agency models affected transaction outcomes
- Offer a “representation options consultation” early in the relationship
The more informed your clients are, the more comfortable they’ll be with the arrangement—and the less likely misunderstandings become legal issues.
8. Document Everything
In dual agency situations, documentation is your best protection. Document:
- All disclosures with dates and signatures
- Client consent to dual agency arrangements
- Any material facts you’ve shared with either party
- Price and terms discussions with each party (carefully, to avoid breaching confidentiality)
- Your reasoning for specific advice or recommendations
Consider using transaction management systems that create automatic audit trails of all communications and documents. Related article: Essential Real Estate Transaction Documents: Complete Guide for Agents
9. Know When to Walk Away
Not every dual agency opportunity is worth pursuing. Red flags include:
- A client who doesn’t understand or accept the limitations of dual agency despite explanation
- Significant power imbalances between parties (e.g., experienced investor versus first-time buyer)
- Complex transactions requiring aggressive negotiation
- Any situation where you feel you cannot remain neutral
- Clients with unrealistic expectations about your role
Having the confidence to refer clients to other professionals demonstrates integrity and protects your reputation.
The Commission Conversation in Dual Agency
The post-NAR settlement landscape has made commission discussions more transparent—and more complicated in dual agency situations.
New Commission Dynamics
Previously, listing agreements often included offers of buyer agent compensation visible on the MLS. Now:
- Buyer agent compensation is negotiated separately
- Buyers sign agreements specifying their agent’s compensation before touring homes
- Sellers may or may not choose to offer compensation to buyer’s agents
In dual agency scenarios, this creates unique situations:
Scenario 1: Traditional Double Ending You represent both parties and receive compensation from both sides. Full disclosure of your total compensation is essential.
Scenario 2: Single Commission, Dual Representation The seller agrees to pay a set commission that covers your representation of both parties. Ensure both clients understand how you’re being paid.
Scenario 3: Split Compensation The seller pays listing side compensation; the buyer pays buyer side compensation. While less common in dual agency, this model provides maximum transparency.
Best Practices for Commission Discussions
Be upfront: Discuss compensation arrangements before dual agency develops, not after.
Offer discounts: Many agents reduce their total commission in dual agency scenarios as a goodwill gesture, though this isn’t required.
Compare alternatives: Help clients understand what they’d pay with separate representation versus dual agency.
Put it in writing: Ensure all commission agreements are clearly documented in signed agreements.
Key Takeaways for Real Estate Agents
As you navigate the evolving landscape of dual agency in 2025:
- Stay Informed: Regulations and industry practices continue to evolve. Commit to ongoing education about agency law, private exclusives, and commission structures.
- Prioritize Transparency: When in doubt, over-disclose rather than under-disclose. Clear communication prevents most problems.
- Leverage Your Brokerage: If you’re part of a brokerage, use designated agency models whenever possible to provide clearer advocacy.
- Build Systems: Don’t wing it. Have documented processes for identifying, disclosing, and managing dual agency situations.
- Focus on Client Education: Informed clients are satisfied clients. Invest time in helping people understand their options.
- Use Technology: Modern transaction management and compliance tools make dual agency safer and more transparent.
- Know Your Limits: Recognize when dual agency isn’t appropriate and have a referral network ready.
Conclusion: Mastering Dual Agency in a Changing Market
The convergence of NAR settlement changes and the growth of private exclusives has created both challenges and opportunities for real estate agents in 2025. It’s crucial to understand the complexities of dual agency—understanding when it’s appropriate, how to disclose properly, and how to navigate private exclusive networks ethically.
The key is recognizing that dual agency isn’t about maximizing commission on individual transactions. It’s about building a reputation for ethical, transparent service that earns referrals and repeat business for years to come.
By implementing the best practices outlined in this guide, staying current with regulatory changes through resources like NAR and your state real estate commission, and positioning yourself as an educated advisor, you’ll navigate this evolving landscape successfully.
The real estate industry has always rewarded agents who combine legal knowledge, ethical practice, and excellent client service. In the era of private exclusives and post-settlement transparency, those qualities matter more than ever.
Related Resources:
Disclaimer: This article provides general information and should not be construed as legal advice. Real estate laws and regulations vary by state. Consult with your broker, attorney, and state real estate commission for specific guidance on dual agency practices in your jurisdiction.
