Can One Agent Represent Both the Buyer and Seller in Sioux Falls?

Yes, but only with the written consent of both sides. South Dakota calls this limited agency — one agent, or one firm, representing both the buyer and the seller in the same deal. The trade-off is real: a limited agent treats both parties equally and can’t advocate for your price, your terms, or your confidential information the way an agent working only for you would.

By Jeff Merrill | October 6, 2026

You found the house. Maybe it’s a new build in Harrisburg, maybe a resale in west Sioux Falls. You call the number on the sign, the agent is friendly and knows the property cold, and they offer to write your offer too. Clean and easy, right?

Here’s the part nobody tells you upfront: the moment one agent sits on both sides of your deal, you lose your advocate. In South Dakota, that arrangement has a specific name — limited agency — and a specific rule. It can’t happen without your written permission.

Whether you should give that permission depends on what you’re trying to get out of the deal. Let’s walk through it.

What Limited Agency Actually Means in South Dakota

Most people call it “dual agency.” South Dakota law calls it limited agency, and the name is the tell — the agent’s ability to represent you is limited on purpose.

South Dakota recognizes four kinds of agency relationships, and you’ll see them spelled out on the Real Estate Relationships Disclosure your agent is required to hand you early, before you share anything confidential:

  • Single agency — the firm and all of its agents represent only you, and advocate only for your interests.
  • Appointed agency — the responsible broker assigns specific agents to each client, so you still get full representation even when the firm happens to have both sides of the deal.
  • Limited agency — one firm, and sometimes one agent, represents both the buyer and the seller. No one in that firm is solely in your corner.
  • Transaction brokerage — the agent helps the deal close without acting as an advocate for anyone.

Under limited agency, your agent has to represent you and the other party equally. They can’t push for your price over the seller’s. They can’t tell you “offer $10,000 less, they’ll take it,” and they can’t tell the seller “they’ll go higher, hold firm.” They also can’t share your confidential information — your top number, your timeline, how badly you want the house — with the other side.

That protection cuts both ways, which sounds fair until you remember why you hired an agent in the first place: you wanted someone fighting for your number.

Why your consent is the whole ballgame

Limited agency only happens with the informed, written consent of both the buyer and the seller, given ahead of time. If you don’t sign off, it doesn’t happen. That puts the decision squarely in your hands — an agent can’t quietly slide into representing both sides and spring it on you at the closing table.

One thing to watch in a bigger brokerage: if two appointed agents from the same firm end up on opposite sides of your deal, South Dakota treats that as limited agency too. In a large operation like eXp Realty, that’s worth asking about directly — “If your firm has the listing, do I still get my own appointed agent, or does this become limited agency?”

Where Dual Agency Shows Up in a Sioux Falls Deal

This isn’t a rare, theoretical thing. It shows up in three everyday situations here:

  1. You call the listing agent directly. You spot a house on Zillow or a yard sign, call the agent whose name is on it, and ask them to help you buy it. That agent already represents the seller. If they write your offer, you’re looking at limited agency.
  2. New construction. This is the big one in the Tea, Harrisburg, and northwest Sioux Falls corridors right now. The friendly agent in the model home works for the builder — Allen Homes, Van Buskirk, Cordes, whoever it is. They’re a listing agent, not your agent. If you let them handle your purchase too, no one is working to negotiate the builder’s base price, lot premium, or upgrade credits down on your behalf. It’s one of the best reasons to bring your own agent to a new build.
  3. You and the seller already share an agent. It’s a small world in a metro this size. You might know and trust an agent who happens to have the listing you want. Flattering — but it still means nobody solely represents you.

In every one of these, the agent isn’t doing anything shady. Limited agency is legal and common. The only question is whether it serves you.

Should You Agree to It — and How to Protect Yourself

Here’s the honest answer: in a situation where there’s real money left to negotiate, you’re better off with your own agent. When you’re working the price on a $350,000 new build in Harrisburg or going up against other offers on a resale, you want someone whose only job is your outcome — pushing on price, catching problems in the inspection, and reading the other side.

Limited agency can still make sense in narrow cases:

  • The price and terms are already settled, and you just need the paperwork handled fairly.
  • You’re paying cash, you know the property inside out, and there’s little left to negotiate.
  • The firm can offer appointed agency instead, so you keep your own advocate.

If you’re weighing it, protect yourself:

  • Read the disclosure. Your agent must give you the Real Estate Relationships Disclosure. It states exactly which relationship you’re in. Don’t sign it like a formality.
  • Guard your numbers. Never tell an agent who represents the other side your maximum price, your motivation, or your timeline. Once you’re in limited agency they can’t use it against you — but why hand it over at all before you’ve decided?
  • Ask about appointed agency. In a larger firm you may be able to get your own appointed agent even when the firm holds the listing. Ask the question out loud.
  • Bring your own agent. This is the cleanest fix, especially on new construction. A buyer’s agent usually costs you little or nothing out of pocket, and since the 2024 commission changes you’ll sign a written buyer agreement before you tour that spells out how your agent is paid up front.

That buyer-agreement step trips people up now, so it’s worth understanding who actually pays your agent and what you’re signing before you commit to anyone — including the listing agent who offered to “just handle it for you.”

Frequently Asked Questions

Is dual agency legal in South Dakota?

Yes. South Dakota permits it under the name limited agency, but only with the prior written consent of both the buyer and the seller. Without that signed consent, one agent or firm can’t represent both sides of the same transaction.

Does a dual agent cost less?

Not reliably. Some sellers hope combining both sides saves on commission, but that’s negotiated case by case, and any small savings rarely outweighs losing an advocate on price and terms. Since the 2024 commission changes, commissions are openly negotiable on both sides anyway.

Can the builder’s agent represent me on a new construction home?

They can, as limited agency, but it’s usually not in your interest. The model-home agent works for the builder. Bringing your own agent to the first visit keeps someone negotiating the price, upgrades, and lot premium for you, typically at no cost to you as the buyer.

What happens to my confidential information under limited agency?

A limited agent can’t share your confidential details — your top price, your reasons for buying or selling, or your timeline — with the other party. They’re required to treat both sides equally and stay neutral on the negotiation.

Can I say no to dual agency in Sioux Falls?

Absolutely. Limited agency requires your written consent. You can decline, ask for appointed agency, or hire your own agent instead. The choice is yours before anything is signed.

The Bottom Line

Dual agency — limited agency, here in South Dakota — isn’t a trap, but it isn’t a convenience either. It’s a trade: you swap an advocate for a neutral party, and that trade is only worth it when there’s little left to negotiate. Most of the time, especially on new construction, you want your own agent in your corner.

If someone has offered to represent both sides of your deal and you’re not sure what you’d be giving up, call me at 605-201-2846 or reach out through siouxfallsgreathomes.com. I’ll tell you straight whether it makes sense for your situation — even if the answer is that you need your own agent, not me.

About Jeff Merrill
Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. He helps motivated buyers, sellers, and new agents cut through the hype in real estate with honest guidance, hands-on mentorship, and a track record of real results. Connect with Jeff at siouxfallsgreathomes.com or call 605-201-2846.