What does dual agency mean?

Dual agency refers to a situation in real estate where a single agent or broker represents both the buyer and the seller in the same transaction. This is typically enabled when both parties are associated with the same real estate office. In this case, the agent must navigate the interests of both clients, ensuring that they act fairly and without preferential bias towards one party over the other. The potential for conflict of interest exists in dual agency, which is why some states require specific disclosures and consent from both parties involved.

Understanding dual agency is crucial for salespeople, as it affects how they operate during negotiations and the responsibilities they must uphold. It is important for agents involved in dual agency situations to maintain transparency and adhere to ethical standards to protect the interests of both the buyer and the seller.