Quoting from the New York Department of State, "Dual agency arises when a real estate broker or salesperson represents adverse parties (e.g. a buyer and seller) in the same transaction."

This is a very serious issue that requires close examination. If you hire an exclusive agent, you are acting as a principal. Your agent, by definition, is a fiduciary, whose fundamental duties include good faith, undivided loyalty, and full and fair disclosure. Further from the Counsel's Office of the New York State Department of State, "Such duties are imposed upon real estate licensees by license law, rules and regulations, contract law, the principals of the law of agency, and tort law... The object of these rigorous standards of performance is to secure fidelity from the agent to the principal and insure the transaction of the business of the agency to the best advantage of the principal." In other words, all actions undertaken by your agent, in word and deed, must be in your best interests.

As your exclusive agent, your broker must reveal to each property owner that he represents your interests, and not those of the property owner. His job is to obtain the best possible terms on your behalf. If your broker also exclusively represents the property owner (seller or landlord), the conflict is obvious. What is more subtle is a situation in which the property is exclusively represented by a salesperson or broker within the same firm as your broker. This is more likely with larger brokerage agencies. From the point of view of the law (and NYS Department of State), the brokers/salespersons are "one and the same" entity when determining dual agency conflict...(MORE)