What is "dual agency"?

Dual agency occurs when a real estate agent or broker represents both the buyer and the seller in the same transaction. This situation can present unique challenges and requires clear communication and consent from both parties. The agent must navigate the interests of both clients, which can complicate negotiations and potentially create conflicts of interest.

In dual agency, the agent cannot advocate solely for one party, which means that they must tread carefully to ensure both clients are treated fairly and that their confidentiality is maintained. States often have specific regulations regarding dual agency, including disclosure requirements to inform both parties of the dual representation and obtaining their agreement.

The other options do not correctly define dual agency. Multiple agents working for a single buyer, changing representation mid-transaction, or representing two clients in separate transactions do not capture the essence of an agent serving both sides in a single transaction, which is the defining characteristic of dual agency.