What does dual agency refer to?

Dual agency refers to a situation in real estate where a single agent or broker represents both the buyer and the seller in the same transaction. This arrangement can create a unique dynamic since the agent has fiduciary responsibilities to both parties. However, it is important to note that the agent must remain neutral and cannot advocate for one party over the other, which highlights the need for transparency and informed consent from both clients regarding this dual representation.

This structure helps facilitate the transaction, as it can simplify communication and coordination. However, due to the potential for conflicts of interest, it is crucial for the agent to disclose their dual agency status and obtain agreement from both parties to proceed in this manner. This ensures that all parties are aware of the potential implications and can make an informed decision, enhancing the ethical considerations of the practice.