What is 'dual agency' and why is it controversial?

DUAL AGENCY occurs when the same broker/agent represents both sides of a transaction. The conflict: the agent owes fiduciary duties (loyalty, confidentiality, full disclosure) to both parties — but their interests directly conflict. The seller wants maximum price; the buyer wants minimum price. The agent cannot fully advocate for either without harming the other. State laws: most states allow dual agency ONLY with full written informed consent from both parties; some states prohibit it; some permit only 'disclosed dual agency' or 'facilitated agency' where the agent becomes a transaction facilitator without full fiduciary duties to either party. Designated agency (different agents from the same brokerage represent each party) avoids some but not all dual agency issues.