What does dual agency mean in real estate transactions?

Dual agency in real estate transactions refers to a situation where a single agent represents both the buyer and the seller within a transaction. This unique arrangement can lead to potential conflicts of interest, as the agent must navigate the differing needs and interests of both parties. The dual agent has a fiduciary duty to both the buyer and the seller, which means they must act in the best interest of each, while balancing their responsibilities.

This arrangement can be beneficial in some scenarios, as the dual agent often has a comprehensive understanding of both parties' perspectives and can facilitate communication effectively. However, it is essential that all parties are fully informed and consent to the dual agency relationship, as it can complicate negotiations and affect the overall dynamics of the transaction.

The other options do not accurately define dual agency; they refer to varying representations that do not involve a single agent serving both parties in the same transaction.