Disclosed Dual Agency in NJ: Informed Consent and Its Limits

The short answer: Yes, dual agency is legal in New Jersey, but only as disclosed dual agency. A brokerage firm can represent both the buyer and the seller in the same deal only with the informed consent of both, given in signed brokerage services agreements for residential sales, or in writing for commercial deals (P.L.2024, c.32, s.7.a). Once it's in place, the firm can't advocate for one side against the other, and it must keep both sides' confidential information private.

New agents run into this sooner than they expect, usually when a buyer they're helping falls for a listing held by their own office. Here's how the rules work.

When does a brokerage become a dual agent?

The statute defines a disclosed dual agent as a brokerage firm, including its affiliated licensees, that has an agency relationship with and works for both buyer and seller in the same transaction (P.L.2024, c.32, s.1).

The key word is firm. Dual agency isn't limited to one licensee handling both sides. If the seller's listing is with your brokerage and a different licensee at that same firm represents the buyer, the firm is a disclosed dual agent unless another arrangement, such as designated agency, applies (s.3.a(2)).

Acting for more than one party without the knowledge of all parties is a separate ground for license discipline (N.J.S.A. 45:15-17(b)).

What does "informed consent" actually require?

Handing someone the Consumer Information Statement isn't enough. The Commission's rule says informed consent isn't obtained by distributing that statement alone, and that the party must sign a separate writing confirming consent, which can be part of, or attached to, the brokerage agreement (N.J.A.C. 11:5-6.9(b)).

The same rule defines informed consent (N.J.A.C. 11:5-6.9(a)4). Before the client consents, the firm must explain:

  • the material facts that might reasonably affect the decision, including how big the conflicts of interest are
  • the specific ways the client will get less than full agency representation
  • the other business relationships the licensee offers, and the ones it doesn't
  • the client's right to consult an attorney

The 2024 law adds paperwork details. A residential brokerage services agreement must say whether the client consents to dual or designated agency. If consent is given, it goes in the agreement or another document that needs a separate initial or signature. It must also include the client's acknowledgment that a disclosed dual agent "shall not advocate terms favorable to one principal to the detriment of the other principal" (s.3.b(2)(d) for buyers; s.5.b(2)(d) for sellers).

What can't a dual agent do?

Section 7.b lists the extra duties of a disclosed dual agent (P.L.2024, c.32, s.7.b):

DutyWhat it means in practice
Take no action adverse or detrimental to either partyYou can't push one side's interests against the other
Timely disclose actual or potential conflicts you can reasonably anticipateSpeak up early, not at the closing table
Advise both parties to get expert advice beyond your expertiseInspectors, attorneys and tax advisers stay in the picture
Keep confidential information from or about either party private, even after the relationship endsExceptions: subpoena, court order, other legal requirement, or the party's express permission
Keep looking for a buyer (or a property) unless agreed otherwise in writingNot required once a contract is past attorney review

Most of these can't be waived. Only the confidentiality and continued-search duties have the built-in exceptions noted above, and the parties can agree in writing to add duties.

The Consumer Information Statement text in the Commission's rule puts the price point plainly: as a disclosed dual agent, the licensee may not, without express permission, disclose that the seller will accept less than the listing price or that the buyer will pay more than the offered price (N.J.A.C. 11:5-6.9(h)). NJREC has told licensees to use the revised statement attached to Bulletin 24-11 in place of the rule text until new rules are adopted, so ask your broker for the current form.

Can a dual agent show other homes or take other offers?

Yes. The law says showing properties the seller doesn't own, or listing competing properties, isn't adverse to the seller or a conflict of interest. Showing a property to other buyers, or presenting more offers while it's under contract, isn't adverse to the buyer either (s.7.d and s.7.e).

Can the firm be paid by both sides?

It can. A licensee acting as a disclosed dual agent may receive compensation through the brokerage firm from the buyer, the seller or both, provided the sources and amounts are disclosed in writing to both (s.7.c). As always, a salesperson's pay comes through the broker, never directly from a client (N.J.S.A. 45:15-16).

How is designated agency different?

Designated agency is the 2024 alternative. The firm designates one licensee to represent only the buyer and a different licensee to represent only the seller. Those two designated agents aren't dual agents, and each owes fiduciary duties only to their own client. It takes effect only through a written designated agency agreement with the informed written consent of each party (s.8.a).

One catch: NJREC's bulletin explains that the firm itself, apart from the two designated licensees, still acts in the capacity of a disclosed dual agent (Bulletin 24-11). Your broker or manager is in that middle position.

How does a dual agency relationship end?

Apart from expiring or finishing at closing, a dual agency brokerage services agreement can be ended only in writing, signed by the buyer or seller, with confirmed delivery to the firm (s.10.d). The duty to keep confidential information private continues afterward (s.7.b(4)).

What should a new agent do when it comes up?

  • Check your agreements first. Did both clients consent to dual or designated agency, and on what terms?
  • Bring in your broker. Who handles the deal, and whether designated agency is offered, is a firm decision.
  • Explain it before anyone signs, including what each client gives up.
  • Watch the open-house sign. The required sign tells unrepresented buyers the host "is not precluded from being a disclosed dual agent or designated agent" (s.14).

For all five business relationships side by side, see the agency guide for the NJ exam and our summary of recent NJ licensing law changes. For your own purchases and sales, see buying or selling property as a licensee. Agency also matters in listing agreements.

Agency law is a core part of NJ pre-licensing education. Business Elementary's 75-hour pre-licensing course page has the details.

Sources

Last reviewed: October 30, 2026

Frequently Asked Questions

Do both buyer and seller have to agree to dual agency in NJ?

Yes. A firm can act as a disclosed dual agent only with the informed consent of both parties, set out in their signed brokerage services agreements in residential deals (P.L.2024, c.32, s.7.a).

Is it dual agency if two different agents at the same office represent the buyer and seller?

Usually, yes, because the firm r

Can I say no to dual agency?

The consent is the client's to give, and the agreement must state whether they consent (s.3.b(2)(d)). How a firm handles a buyer who declines depends on the firm's policies, so ask before signing.

Does a dual agent still have to share defects in the property?

Dual agency limits advocacy and confidential information, not honesty. All brokerage firms must disclose material information they know, or that a reasonable effort would have revealed (Bulletin 24-11).

Is dual agency tested on the NJ real estate exam?

Agency is 13% of the national portion of the PSI exam, and agency disclosures are listed in the outline (PSI candidate bulletin).