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SD 138

An Act prohibiting real estate dual agency transactions

194th Legislature (2025-2026) Introduced by Mike Moore

Massachusetts bill prohibiting real estate agents from representing both buyer and seller in same transaction to eliminate dual-agency conflicts of interest.

House concurred
0
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Bill Summary · SD 138

Legislative bill overview

SD 138 would prohibit real estate agents from simultaneously representing both the buyer and seller in a single property transaction (known as dual agency). The bill aims to eliminate this practice, which is currently permitted in Massachusetts under certain disclosure conditions, requiring agents to represent only one party per transaction.

Why is this important

Dual agency creates inherent conflicts of interest where agents have financial incentives to prioritize commission over either party's best interests. This practice can disadvantage both buyers and sellers by reducing negotiating leverage, limiting price transparency, and creating information asymmetries that favor the agent's commission structure rather than fair dealing.

Potential points of contention

  • Real estate industry opposition: Agents and brokerages may argue that dual agency, when properly disclosed, is efficient and allows transactions to proceed more smoothly; they may claim prohibition reduces market flexibility and increases transaction costs
  • Market impact concerns: Critics may contend the ban could slow sales velocity, increase costs for consumers, or disadvantage agents in competitive markets where they represent both parties by agreement
  • Disclosure versus prohibition debate: Some stakeholders argue improved disclosure requirements are preferable to outright prohibition, allowing informed parties to consent rather than banning a practice entirely

Compiled from official sources — confirm details with the bill’s official record.

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