Dual agency is legal in Missouri, but it is frequently misunderstood. At first glance, it can sound efficient. One agent. One transaction. Fewer moving parts. What is often overlooked is the trade-off. When dual agency is established, the agent must step back from full advocacy for both the buyer and the seller.
That limitation is significant, and it fundamentally changes the agent’s role in the transaction.
Understanding that shift is essential before agreeing to dual agency.
What dual agency means in Missouri
In Missouri, dual agency occurs when the same brokerage represents both the buyer and the seller in the same transaction. Missouri allows this arrangement only with informed, written consent from both parties. Once that consent is given, the broker and licensees involved operate as limited dual agents.
Oversight and enforcement of agency relationships fall under the Missouri Real Estate Commission, which is clear that dual agency is not shared advocacy. It is limited representation.
What “stepping back from advocacy” actually means
In a traditional single-party agency relationship, an agent advises their client on price, negotiation strategy, inspection responses, and timing. In a dual agency relationship, the agent’s ability to provide negotiation strategy is limited.
Missouri law restricts a dual agent from disclosing or using either party’s confidential negotiating information, including:
- How much a buyer may be willing to pay
- How little a seller may be willing to accept
- Motivations, urgency, or financial flexibility
- Prior offer terms or strategy preferences
Because that information cannot be used to guide one party without disadvantaging the other, the agent must avoid advising either side on negotiation strategy. The agent still facilitates the transaction and must disclose known material facts about the property. What the agent cannot do is guide strategy in a way that favors one party over the other.
Many consumers do not fully realize this until they reach a moment where advice is expected and discover it cannot legally be given.
Why some buyers and sellers still choose dual agency
Despite its limitations, dual agency does appeal to some consumers. It can streamline communication and coordination, particularly in straightforward transactions. With one brokerage involved, scheduling and document flow may feel simpler. Some buyers and sellers also perceive dual agency as more neutral or less adversarial, especially when both parties are motivated and expectations are aligned.
In some situations, compensation may be discussed differently, but any changes must be clearly disclosed and agreed to in writing. Reduced commission is not automatic and should never be assumed.
Where most frustration comes from
Most dual agency complaints do not stem from intentional misconduct. They stem from misunderstanding.
Common reactions include:
- I thought my agent would advise me
- I did not realize they could not help with strategy
- I assumed someone was looking out for my side
Nearly all of those frustrations trace back to the same missed point. When dual agency exists, the agent must step back from full advocacy for both parties.
An alternative many Missouri consumers overlook: transaction agency
Dual agency is not the only option when one agent or brokerage is involved in a transaction. Missouri allows for transaction agency, where the agent does not represent either party as a client.
In a transaction agency relationship, the agent facilitates the transaction but does not owe fiduciary duties of advocacy to the buyer or the seller. The agent provides:
- Factual information about the property and process
- Document preparation and coordination
- Disclosure of known adverse material facts
- What the agent does not provide is negotiation strategy, pricing advice, or advocacy for either side.
Transaction agency can be appropriate when both parties want assistance with the mechanics of the transaction but do not expect strategic guidance or representation. As with all agency relationships, it must be clearly disclosed and agreed to in writing.
Another common alternative: one client, one customer
Missouri also allows an agent to represent one party as a client while assisting the other party as a customer, without creating dual agency. In contracts, this is often described as the seller’s agent assisting the buyer as a customer, or the buyer’s agent assisting the seller as a customer. While the wording can sound awkward, the intent is straightforward. The agent’s loyalty does not change. The agent provides full advocacy to their client, while the other party receives factual information, document preparation, and transaction coordination without negotiation advice. For many transactions, this structure provides clearer expectations and avoids the limitations inherent in dual agency.
Why clarity matters
Agency relationships and disclosure remain a common source of consumer confusion and complaints in real estate transactions. Clarity at the beginning of a transaction reduces the risk of conflict later.
The takeaway for Missouri buyers and sellers
Dual agency is legal in Missouri, but it comes with a limitation that should never be glossed over. When dual agency exists, the agent must step back from full advocacy for both sides. Before agreeing to any agency arrangement, buyers and sellers should ask how the agent’s role will change and whether another structure might better serve their interests.
A good agent explains the forms.
A great agent explains what those forms mean.
Karen Moeller
🌐 STLKaren.com
📧 Karen.McNeill@STLRE.com
📞 314.678.7866
About the Author:
Karen Moeller is a St. Louis area REALTOR® with MORE, REALTORS® and a regular contributor to St. Louis Real Estate News, helping clients make informed, data-driven decisions.
Disclaimer: This article is provided for general informational purposes only and reflects the practical perspective of an experienced Missouri real estate broker. It is not legal advice. Agency relationships, rights, and obligations are governed by Missouri law and the specific terms of the written agreements involved. Buyers and sellers should consult a qualified real estate attorney or appropriate professional for legal advice regarding their particular situation.
