What could lead to a conflict of interest in a dual agency?

In a dual agency situation, representing both the buyer and seller interests simultaneously can lead to a conflict of interest. This stems from the inherent tension between the motivations of each party: the buyer wants to secure the best deal possible, while the seller aims to achieve the highest price. When an agent attempts to accommodate both parties, it can be challenging to adequately advocate for each, as the goals may contradict one another. This dual representation can compromise the agent's loyalty and duty to fully support one party's best interests over the other, creating a potential ethical dilemma.

Clear communication, equal attention to needs, and even offering discounts to one party do not essentially create conflicts of interest in the same way that simultaneously representing competing interests does. While those actions could introduce other complexities or perceptions of bias, they don't inherently violate the fundamental ethical obligations that arise in a dual agency scenario. Thus, the dual representation itself is the crux of the conflict of interest in this context.