What does dual agency refer to?

Dual agency refers to a situation where one real estate agent or broker represents both the buyer and the seller in the same transaction. This arrangement can create unique challenges and ethical considerations, as the agent must navigate the interests of both parties simultaneously. It requires the agent to maintain a balance and ensure fair treatment for both the buyer and the seller, while also adhering to all legal and fiduciary responsibilities.

In jurisdictions that allow dual agency, agents are typically required to disclose their dual role to both parties and obtain their consent to proceed. This helps in maintaining transparency and trust in the transaction process. Understanding dual agency is crucial for real estate professionals, as it requires a delicate handling of communication and negotiation strategies to protect the interests of all involved.

The other options refer to different concepts within real estate practices. Representing only the seller signifies a single agency, not dual agency. A broker managing multiple agents is about team dynamics rather than representing parties in a sale. Lastly, a partnership between two real estate firms does not align with the definition of dual agency, which is specifically about representation in transactions.