What is a dual agency?

A dual agency occurs when a single agent represents both the buyer and the seller in a real estate transaction. This situation can lead to complex dynamics since the agent must navigate the interests of both parties simultaneously. The agent is required to disclose this dual representation to both the buyer and seller, ensuring that they are aware of the potential conflicts of interest that may arise. In many jurisdictions, dual agency is governed by specific laws and regulations designed to protect the rights of each party involved.

The other options don't accurately describe dual agency. The second choice refers to multiple buyers, which does not imply that the agent is representing both a buyer and a seller. The third option narrows the scope too much by stating the agent represents a seller only, thus excluding the buyer's representation, which is essential to the concept of dual agency. Lastly, the fourth choice concerning representation of the government does not pertain to the typical buyer-seller relationship seen in dual agency scenarios. Hence, recognizing the role of an agent handling both sides of a transaction is central to understanding dual agency.