What is "dual agency" in real estate?

Dual agency in real estate refers to a situation where a single agent or brokerage represents both the buyer and the seller in the same transaction. This arrangement can present both opportunities and challenges, as the agent must balance the interests of both parties without favoring one over the other.

It is crucial for the agent to disclose this relationship to both the buyer and the seller, as dual agency can create potential conflicts of interest. The principle behind dual agency is that a single agent may facilitate a smoother transaction by having comprehensive knowledge of both sides, thereby streamlining communication and negotiation.

Understanding the nuances of dual agency is vital for agents, as it requires them to navigate ethical considerations and ensure that both parties are treated fairly throughout the transaction process.