Dual agency is when one real estate agent, or one brokerage, represents both the buyer and the seller in the same transaction. Colorado law prohibits it, and so does Florida. A Colorado broker who works with both sides has three options: act as a transaction-broker for both parties, represent one side only, or work at a brokerage that assigns a separate designated broker to each party.
Key takeaways
- Dual agency means one agent or brokerage represents both buyer and seller.
- Colorado and Florida both prohibit it by statute.
- A transaction-broker is a different role from a dual agent.
- Use the checklist below to confirm who works for you before you sign.
This article is general education, not legal advice. Always read the brokerage relationship disclosure you are given and ask questions about anything unclear.
What dual agency means
In a typical sale, the seller has a listing agent and the buyer has a buyer’s agent. Each one advocates for their own client on price, terms, inspections and deadlines. With dual agency, a single agent or brokerage tries to represent both sides at once. Every point in the deal involves one party wanting more and the other wanting to give less, so one representative can’t push hard for both.
States handle this differently. Some allow disclosed dual agency if both parties give written consent. Colorado and Florida do not.
Is dual agency legal in Colorado?
No. Colorado law is direct: “A broker shall not establish dual agency with any seller, landlord, buyer, or tenant” (C.R.S. 12-10-406).
Colorado’s statute still defines the term. A “dual agent” would be a limited agent for both sides with written informed consent (C.R.S. 12-10-402). The definition exists so the law can say exactly what brokers may not do.
A transaction-broker is a different role from a dual agent
Some older articles, including an earlier version of this one, describe a dual agent as “also known as a transaction broker.” That is wrong under Colorado law.
Under Colorado law, a transaction-broker helps one or more parties with communication, interposition, advisement, negotiation, contract terms and closing “without being an agent or advocate for the interests of any party” (C.R.S. 12-10-402). A dual agent would advocate for both sides in a limited way. A transaction-broker advocates for neither side and helps the deal get done.
That gap matters. If you want someone pushing for your interests, a transaction-broker relationship won’t give you that. For a fuller explanation of the role, see our guide on what a transaction broker does.
Dual agent vs transaction-broker vs designated single agents
| Relationship | Who the broker works for | Advocacy / loyalty | Allowed in Colorado? |
|---|---|---|---|
| Dual agent | Both buyer and seller, as a limited agent for each | Divided between two parties with opposing goals | No (C.R.S. 12-10-406) |
| Transaction-broker | Assists one or more parties without representing any of them | No advocacy for either party | Yes; a written agreement is required as of August 12, 2026 (DRE advisory) |
| Designated single agents (same brokerage) | One designated broker for the seller, a different one for the buyer | Each broker is a single agent for their own client | Yes, with timely written disclosure (C.R.S. 12-10-403) |
How Colorado handles common dual agency scenarios
In many states, the situations below are where dual agency shows up. Here is how Colorado law handles each one.
Both agents work at the same brokerage
You hire a buyer’s agent, and the home you love is listed by a colleague at the same company. In Colorado, this does not create dual agency. An employing brokerage may have designated brokers working as single agents for the seller and the buyer in the same transaction without creating dual agency (C.R.S. 12-10-403).
Your designated broker keeps working for you, and the listing broker keeps working for the seller. The relationship must be disclosed to you in writing in a timely manner.
You walk into the listing agent’s open house
You don’t have an agent yet, you tour an open house, and you’d like the listing agent to help you make an offer. Colorado law gives that one broker two options. They can act as a transaction-broker for both you and the seller, or stay the seller’s single agent and treat you as a customer. They cannot be a single agent for both (C.R.S. 12-10-403).
If you want your own advocate, you can hire a separate buyer’s agent. Settle this before you write an offer, well before the home shows as contingent or under contract.
You want to buy a home your own agent listed
Your agent is helping you buy and also holds the listing on a home you want. The same rule applies. An individual broker working with both sides may be a transaction-broker for both, or a single agent for one side treating the other as a customer, “but not as a single agent for both” (C.R.S. 12-10-403).
Ask which option your agent proposes, and get it in writing. If it changes from single agency to transaction-brokerage, your agent stops advocating for you.
What changed in Colorado in August 2026
Colorado tightened the paperwork. Under HB26-1426, effective August 12, 2026, “a broker shall establish either a transaction-broker or a single-agency relationship through a written agreement” before performing licensed duties. The agreement must also conspicuously disclose the compensation amount or rate (Colorado Division of Real Estate advisory).
Before this change, a transaction-broker relationship could exist without a written agreement. Now both relationship types need one. The Division’s advisory notes that showings, open houses and comparative market analyses are not licensed duties, so a broker can do those before the agreement is signed.
For buyers, this usually means signing an agreement before your agent starts writing offers or negotiating for you. Our guide to the Colorado buyer agency agreement explains what that document covers.
Florida and other states
Florida also bans dual agency. “A real estate licensee may not operate as a disclosed or nondisclosed dual agent” (Fla. Stat. 475.278). Florida licensees may work as transaction brokers or single agents. The law presumes every licensee is a transaction broker unless a single-agent relationship or no brokerage relationship is set up in writing.
Other states set their own rules, and some permit disclosed dual agency with written consent. If you buy or sell outside Colorado or Florida, check that state’s disclosure forms.
Questions to ask before you sign
Use this checklist before you sign anything with a broker:
- Is there a written agreement? In Colorado, one is required before licensed duties begin.
- What relationship does it set up? Single agent for you, or transaction-broker?
- Who else at the brokerage is involved? If a colleague represents the other side, confirm designated brokerage is disclosed in writing.
- What happens if I want one of your listings? Ask how the relationship would change, and whether you’d still have an advocate.
- Is compensation disclosed clearly? The amount or rate must be conspicuous in the agreement.
- Can I get a copy of every disclosure? Keep them with your transaction file.
Trelora agents in Colorado explain the brokerage relationship in writing up front, so you know who you’re working with before the work starts.
Frequently asked questions
Is dual agency legal in Colorado?
No. C.R.S. 12-10-406 says a broker shall not establish dual agency with any seller, landlord, buyer or tenant. Brokers who work with both sides must use one of the other relationships Colorado allows.
Is a transaction-broker the same as a dual agent?
No. A transaction-broker helps the parties complete the deal without being an agent or advocate for anyone (C.R.S. 12-10-402). A dual agent would represent both sides as a limited agent, which Colorado prohibits.
Can my agent represent me if they listed the home I want?
Your agent can’t be a single agent for both you and the seller. They can act as a transaction-broker for both, or stay a single agent for one side and treat the other as a customer (C.R.S. 12-10-403). Get the choice in writing and know what advocacy you’re giving up.
What if the buyer’s and seller’s agents work for the same brokerage?
Colorado allows designated brokerage. Separate brokers at the same firm can each work as a single agent for their own client without creating dual agency (C.R.S. 12-10-403). The arrangement must be disclosed to you in writing in a timely manner.
Is dual agency allowed in Florida?
No. Fla. Stat. 475.278 bars licensees from operating as disclosed or nondisclosed dual agents. Florida presumes licensees are transaction brokers unless a single-agent relationship is set up in writing.
Christopher has been been in the Real Estate industry for 8 years and has had the opportunity to close over 1,000 deals while acting as the Managing Broker for thousands more. Christopher is passionate about continuing to find ways to simplify, maximize, and serve Trelora’s clients exceptionally well and spends his time building teams to deliver high levels of service. When not doing real estate Christopher can be seen training for marathons and ultra relays with his 2 year old daughter, eating pizza, and drinking a steady stream of Diet Coke.