What is a 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 arise in various real estate dealings where the same agent or brokerage facilitates negotiations on behalf of both parties. The key aspect of dual agency is that the agent has a fiduciary duty to both clients, which can create a conflict of interest, as the agent must balance the interests of both the buyer and the seller.

In scenarios involving dual agency, the agent is required to disclose their dual role to both parties and often must obtain explicit consent from both the buyer and the seller. This practice, while legally permissible in many jurisdictions, can be complex and requires careful management to ensure fairness and transparency are upheld throughout the transaction process.

The other options do not accurately define dual agency. A situation where an agent only represents one seller pertains to exclusive representation, while having multiple clients with conflicting interests can refer to a general agency or representation issue, not specifically dual agency. Working independently without a principal describes a situation where there is a lack of agency relationship, which does not align with the definition of dual agency.