Why Dual Agency Can Cost Buyers Money in Mexican Real Estate

Buying real estate is one of the most significant financial decisions a person will ever make. Yet many buyers — especially international buyers — do not fully understand how representation works in Mexico or how dual agency can directly impact the price they pay.

Dual agency occurs when the same real estate agent represents both the buyer and the seller in the same transaction. While it may appear efficient on the surface, it often creates conflicts of interest that can quietly cost buyers real money.

What Dual Agency Really Means

In a dual agency transaction, the agent owes fiduciary duties to both parties. This requires balancing the interests of the seller and the buyer simultaneously — even when those interests are directly opposed, such as price, terms, and negotiation strategy.

In smaller markets, this arrangement is common, but it is not always buyer-friendly.

How the United States Handles Dual Agency

In the United States, dual agency is legal in most states but strictly prohibited in several, including Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming.

Where it is legal, it requires written, informed consent from both parties because lawmakers recognize the inherent conflicts of interest and limitations it places on true advocacy.

Canada’s Approach to Dual Agency

Canada takes an even more restrictive stance.

In British Columbia, dual agency has been effectively illegal since June 15, 2018, except in rare and highly specific circumstances such as remote communities with no reasonable alternatives.

In provinces where it is still permitted, such as Ontario, full written consent is required, and the agent becomes a neutral facilitator, prohibited from offering strategic advice or negotiation guidance to either side.

These rules exist to protect consumers.

What Many Buyers Don’t Realize About Mexico

When buyers from the U.S. or Canada enter the Mexican real estate market, they often assume similar safeguards apply. In reality, the structure is different.

In Mexico, the listing agent legally represents the seller. If that same agent also assists the buyer, there is no obligation to negotiate aggressively on the buyer’s behalf.

The result is common:buyers pay more than necessary without ever realizing it.

How Dual Agency Costs Buyers Money

In my experience, buyers without independent representation often lose 1% to 3% of the purchase price, and sometimes significantly more. This happens because:

• The agent’s priority is protecting the seller’s price

• Negotiation leverage is reduced or nonexistent

• Pricing, valuation, or structural issues go unchallenged

Most buyers never know what they left on the table.

Why Independent Representation Matters

A buyer’s agent who is not tied to a specific listing can:

• Provide access to the entire market

• Negotiate exclusively for the buyer

• Identify legal, tax, or valuation risks

• Protect the buyer’s long-term investment

This does not mean dual agency is illegal or inherently unethical in Mexico. It simply means buyers must understand the trade-offs before agreeing to it.

Final Thoughts

In the U.S. and Canada, many buyers would never consider entering a transaction without independent representation. In Mexico, that option exists — but many buyers are unaware of it.

Understanding how dual agency truly works can be the difference between a smart purchase and an expensive mistake.