What is a dual agency agreement in real estate?

[64] In usual circumstances, a dual agency agreement is an agreement entered into when a real estate agent acts for both the vendor and the purchaser. In such circumstances, there are inherent conflicts of interest for the agent, who is fixed with obligations to two principals. The dual agency agreement limits such fiduciary obligations so that such arrangements are possible. As stated in Grimshaw v. Progroup Realty Ltd., 2004 Carswell BC 2355 (S.C.), aff’d 2004 BCCA 523: 31 In British Columbia there has arisen in the real estate industry a practice and a procedure whereby realtors can act for both parties, that is the seller and the purchaser. Where there is to be such an arrangement, a form of agreement has been developed which is signed by both the vendor and the purchaser. By that agreement it is acknowledged that both of the parties have agreed that one agent will act for both of them. The agreement purports to limit the scope of the duties which are owed by the agent to each of the parties. It contains an acknowledgment that all parties are aware of the specifics of the arrangement and the obligations that will be imposed.