What is dual agency in real estate?

Dual agency in real estate refers specifically 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 create certain complexities and conflicts of interest, as the agent must navigate the differing interests of both parties. For instance, the agent has to maintain a neutral stance and cannot disclose confidential information from one party to the other without their consent. The purpose of dual agency is to streamline communication and facilitate the transaction, but it is essential that both parties are fully informed and agree to this arrangement, often through a written disclosure.

The other choices focus on different aspects of real estate representation, but they do not define dual agency correctly. Representing only the seller pertains to exclusive seller representation, working with multiple brokerages may refer to a broker's business operations, and a type of buyer's agency specifically indicates representation for buyers only. These terms and concepts differ fundamentally from the unique arrangement of dual agency.