What constitutes dual agency in real estate?

Dual agency in real estate refers to a situation where a single real estate agent or broker represents both the buyer and the seller in the same transaction. This arrangement can create potential conflicts of interest, as the agent must balance the interests of both parties, which may not always align. It requires transparency and informed consent from both the buyer and seller, ensuring they understand the implications of the agent acting on behalf of both sides.

In practice, dual agency can complicate negotiations, as the agent must remain impartial and cannot advocate for one party over the other. It’s important for the agent to clearly disclose this relationship to all parties involved and to obtain their agreement to proceed under a dual agency arrangement.

This concept is crucial in understanding the ethical responsibilities and legal implications for agents, as failure to properly disclose dual agency can lead to legal repercussions and damage to professional credibility.