Understanding how real estate agency works can sometimes be tricky. One issue that comes up is how state law regulates agents handling a dual agency situation in which the broker is under contract to represent both the seller and the buyer.

Until the last decade, when buyer brokerage gained a foothold in the industry, agents working with buyers were considered to be sub-agents to the agent who listed the home. They therefore owed a financial allegiance to the seller. Today, things have changed. A buyer's agent owes fiduciary responsibility only to the buyer, regardless of who pays the commissions.

But can an agent list a home for sale and also offer exclusive buyer's representation on a different home? Absolutely. Be sure to ask your agent about agency laws. California requires agents to disclose whose interests they are representing in the transaction.

The National Association of Realtors says 75% of buyers now retain a buyer's agent to represent their interests.