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The Dual Agency Trap: Why Ohio Buyers and Sellers Should Think Twice

It’s not just questionable—it’s risky. The Dual Agency Trap: Why Ohio Buyers and Sellers Should Think Twice

In Ohio real estate, dual agency—where one agent represents both buyer and seller—is a legal practice that puts negotiation power, equity, and transparency at serious risk. And while it’s technically allowed with disclosure, it’s riddled with conflicts of interest no consumer should tolerate.

Whether you’re buying or selling a home, here’s why dual agency should be a firm “no.”

⚖️ Legal ≠ Ethical

Ohio Revised Code §4735.71 permits dual agency. But just because it’s legal doesn’t mean it’s smart.

Agents in dual agency agreements are warned not to favor one side—but neutrality isn’t advocacy. It’s passivity. And it costs clients money.

Would you hire the same attorney to represent both the plaintiff and the defendant in a lawsuit? Absolutely not.

In real estate, the conflict is just as clear. Buyers and sellers deserve bold, loyal advocates—not referees tiptoeing between competing interests.

This isn’t hypothetical—it happens every day, eroding trust and draining financial outcomes.

🚪 Split Loyalty Means Split Results

  • Weakened Negotiation: Your agent can’t defend your asking price while helping the buyer score a deal.
  • Blurry Strategy: Counteroffer timing and pricing analysis become diluted.
  • Risk of Undervaluation: Dual agents may lean toward quicker sales—not maximum equity.
  • Limited Advocacy: You miss out on candid advice about offer tactics and seller psychology.
  • Restricted Disclosure: Dual agents must legally withhold insights that could benefit you.
  • Neutral, Not Loyal: During appraisal gaps or inspection fallout, neutrality is exposure—not protection.

📚 Real Case Studies: From Ohio to California

Black v. Stouffer Realty (Ohio)

In 2013, Mrs. Black entered a dual agency agreement for a condo purchase. When financing fell through, the seller sued. Mrs. Black countersued—alleging fraud and breach of fiduciary duty.

Verdict: The jury ruled in her favor, citing violations in the Ohio Dual Agency Disclosure Statement. Damages were awarded. It was a clear message: dual agency can blur accountability and lead to legal fallout.

Horiike v. Coldwell Banker (California)

In 2016, California’s Supreme Court sided with Hiroshi Horiike after he bought a Malibu home listed as 15,000 sq. ft., but public records showed closer to 11,000 sq. ft.

Coldwell Banker represented both parties. Horiike sued, arguing that the listing agent failed to advise him properly.

The ruling: When a brokerage operates as a dual agent, every agent owes fiduciary duty to both buyer and seller. This precedent reinforced that dual agency doesn’t just blur lines—it invites legal exposure and undermines trust.

📄 Disclosure Forms: Required—and Routinely Mishandled

Ohio law mandates completion of an Agency Disclosure Statement when a licensed Real Estate Agent, Broker, or Realtor represents a buyer, seller, or both. It’s meant to clarify representation roles—but too often, it’s sloppily executed or incomplete.

Common missteps include:

  • Buyer Agents sending blank or partially filled forms, expecting others to correct their errors.
  • Omissions like property address, party names, or brokerage details.
  • Listing Agents uploading incomplete forms to the MLS.
  • Signed documents being altered post-signature—a serious legal misstep unless reinitialed by all parties.

The form must be completed prior to signing. Cutting corners not only risks professionalism but may invite liability. Agents should consult their broker, legal counsel, or the Ohio Division of Real Estate for guidance. Representation begins with precision.

⚠️ Why Disclosure Isn’t Enough

Even when forms are properly executed, disclosure alone doesn’t guarantee protection. Most consumers don’t fully understand what they’re forfeiting by agreeing to dual agency: advocacy, insight, and negotiation strength.

Why hire someone who’s prohibited from fighting for you?

💡 Smarter, Safer Alternatives

You deserve full representation—without compromises.

  • ✅ Demand single agency—your agent should represent only you.
  • ✅ Choose brokerages that reject dual agency outright.
  • ✅ Consider flat-fee MLS services like Ohio Broker Direct, where sellers maintain control and save thousands—without sacrificing transparency or power.

🏡 Why Ohio Broker Direct Is the Smarter Choice

With over $1 billion in real estate sold and an A+ BBB rating, Ohio Broker Direct helps sellers:

  • Save thousands in commission fees
  • Maintain complete control of showings and negotiations
  • Syndicate listings to Zillow, Realtor.com, Homes.com
  • Receive direct buyer inquiries—no gatekeeping

Explore success stories and commission savings at OhioBrokerDirect.com, or read verified reviews on Realtor.com.

🚪 Draw the Line

Dual agency isn’t just risky—it’s a deliberate compromise of your representation.

Whether defending your asking price or navigating inspection fallout, you deserve loyalty—not legal gymnastics. Say no to shared agents. Say yes to transparency, control, and real advocacy.

📣 The verdict? Buyers and Sellers should think twice about dual agency. Period.

Ohio Broker Direct & its Brokers or Associates assumes no responsibility or liability for any errors or omissions in this blog, we advise all participants in buying or selling real estate to enlist the services of a Real Estate Attorney.

About the Author

01-OBD-Portrait-Joan Elflein

Joan Elflein, Principal Broker and founder of Ohio Broker Direct, has been a trailblazer in the real estate industry since 1983. She established Ohio Broker Direct, a flat-fee brokerage firm, to champion ethical practices and client empowerment. Joan's innovative services have saved Ohio sellers millions in commissions and earned her firm an A+ Better Business Bureau rating. With over a billion dollars in transactions, you can ensure Joan's decades of experience will provide top-tier professional service and personal care in every interaction. 

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If you have any questions regarding the for sale by owner process, or how we can help you save money while selling your home, please don’t hesitate to contact us today. We will happily answer any questions you may have, and look forward to working with you in selling your home.

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