What does "dual agency" refer to in Oregon real estate practice?

Dual agency in Oregon real estate practice occurs when a single agent represents both the buyer and the seller in a real estate transaction. This situation can lead to potential conflicts of interest since the agent must balance the interests of both parties, who may have opposing goals. For instance, the buyer typically wants to negotiate the best price, while the seller aims to maximize their sale price.

In Oregon, dual agency is permissible, but it requires full disclosure to both parties and informed consent. This means that both the buyer and the seller must be aware of the dual representation and agree to it. The purpose of this arrangement is to allow for a smoother transaction process, as the same agent facilitates communication and negotiations between both parties. However, it's crucial for the agent to remain neutral and avoid favoring one party over the other.

The other options describe different scenarios that do not accurately represent the concept of dual agency. Goals of representation often vary and can involve more than one client; however, they do not capture the essence of dual agency, which specifically revolves around the dual representation of both sides in a transaction.