What does dual agency mean in real estate?

Dual agency in real estate refers to the situation where a single real estate agent or broker represents both the buyer and the seller in the same transaction. This arrangement can lead to a more streamlined communication process, as the same agent is privy to both sides’ goals and preferences. It allows for coordination between both parties, potentially facilitating a smoother negotiation process. However, it also creates the need for clear disclosure and informed consent from both parties due to the inherent conflicts of interest, as the agent must balance the interests of both the buyer and seller simultaneously.

The other options reflect different types of representation that do not encompass the dual role of advocating for both the buyer and seller in a single transaction. Representing only the seller or only the buyer indicates exclusive representation, which is separate from the concept of dual agency. Meanwhile, representing multiple parties in separate transactions does not imply the simultaneous representation required for dual agency; it refers to working with different clients in different deals altogether.