Which term describes an arrangement where an agent represents the interests of both the buyer and seller?

The term that describes an arrangement where an agent represents the interests of both the buyer and seller is dual agency. In this scenario, a single real estate agent or brokerage represents both parties in a transaction. This arrangement can streamline communication and negotiation, but it also requires the agent to navigate potential conflicts of interest carefully. Both the buyer and seller must provide informed consent to this arrangement, acknowledging that the agent will be working for both of their interests simultaneously.

Understanding dual agency is essential since it impacts how the agent must conduct themselves ethically and legally. They must maintain transparency and fairness to ensure that both parties are protected and that no one party is unfairly favored over the other. In many states, including Arizona, dual agency is regulated to ensure that all parties involved understand their rights and obligations within the transaction.