What is "dual agency" in real estate?

Dual agency in real estate refers to a situation where a single broker represents both the buyer and seller in the same transaction. This arrangement creates a unique dynamic, as the broker has fiduciary duties to both parties. The benefits of dual agency can include streamlined communication and efficiency since one broker is facilitating the entire deal. However, it also raises potential conflicts of interest since the broker must balance the interests of both the buyer and seller, which can sometimes lead to challenges in negotiating effectively on behalf of each party.

Proper disclosures and agreements are essential in dual agency situations to ensure that both parties fully understand and consent to this arrangement. This clarification helps protect the interests of both the buyer and the seller and maintain transparency in the transaction process.