Dual agency occurs when one licensee represents buyers and sellers in the same transaction under what condition?

Dual agency occurs when a single licensee represents both the buyer and seller in the same transaction. This can happen effectively within a brokerage when both parties are represented by licensees from that same brokerage. The reason this is considered dual agency is that the agent has a fiduciary obligation to both parties, which can create potential conflicts of interest since the interests of buyers and sellers are often opposed.

In this specific context, the representation must align with legal and ethical standards. The dual agent must disclose this relationship to both parties, ensuring that all parties are aware and consent to this type of representation. This is fundamental in maintaining transparency and trust in the transaction process.

Other scenarios listed involve different circumstances. For example, if a seller is unrepresented, it does not constitute dual agency since only the buyer has representation, not both parties. A brokerage handling both real estate and loan transactions also does not imply dual agency concerning the representation of buyers and sellers in a single transaction. Lastly, if a buyer or seller employs licensees from different brokerages, this does not establish dual agency, as dual agency specifically requires the involvement of one licensee handling both sides under one brokerage.