What type of agency allows a realtor to represent both the buyer and seller?

Dual agency allows a realtor to represent both the buyer and seller in a real estate transaction. In this arrangement, the agent must navigate the interests of both parties, which can be complex since the objectives of a buyer and a seller can vary significantly. Dual agency is permitted in many states, including Arizona, but it requires full disclosure to both parties and typically necessitates their consent.

This type of agency is particularly relevant because it can streamline the negotiation process and potentially lead to a quicker sale, as having one agent familiar with both sides can enhance communication. It's crucial, however, for the agent to remain neutral and avoid conflicts of interest to protect the interests of both clients.

Other types of agency, such as single agency, focus exclusively on representing one party in the transaction, whether that be the buyer or the seller, thus not allowing for dual representation. Seller agency commits the agent solely to the seller's interests, while buyer agency focuses solely on advocating for the buyer’s needs. In those instances, the agent can fully concentrate on the goals of one client without the obligation to balance the expectations of both parties.