What is "dual agency" in real estate?

Dual agency occurs when a single broker or agent represents both the buyer and the seller in the same real estate transaction. This situation can create unique challenges because the agent must balance the interests of both parties, which can potentially lead to conflicts of interest.

In practice, a dual agent is responsible for facilitating the transaction while being transparent with both parties about their rights and obligations. It is critical for the broker to maintain impartiality and fairness while negotiating terms on behalf of both the buyer and seller. This requires clear communication, adherence to ethical standards, and a thorough understanding of the legal implications surrounding dual agency.

Transparency and consent are essential components of dual agency, as both the buyer and seller must acknowledge and agree to this arrangement. In many jurisdictions, specific disclosures are necessary to inform both parties of the implications of dual agency, ensuring they are aware of the broker’s dual role.

In contrast, the other choices represent standard practices in real estate where only one party's interests are being represented or where multiple brokers are involved in representing separate clients.