What is dual agency in real estate?

Dual agency in real estate occurs when a single broker represents both the buyer and the seller in a transaction. This situation can arise when a buyer is interested in a property listed by the same broker representing them, creating a unique and potentially complex dynamic. The key aspect of dual agency is that the agent must navigate the interests of both parties, ensuring fair treatment and communication while adhering to the legal obligations of disclosure and loyalty.

In dual agency, the broker must be careful to maintain a neutral stance to avoid conflicts of interest and must obtain informed consent from both parties before proceeding, as it can limit the ability to advocate fully for either side. This arrangement can be advantageous as it simplifies communication and can expedite the transaction, but it also comes with the need for transparency to protect both the buyer's and seller's interests.

Understanding dual agency is vital for anyone in the real estate field, as it highlights important ethical considerations and regulatory guidelines that govern broker conduct.