What is meant by "Dual Agency" in real estate transactions?

The correct meaning of "Dual Agency" in real estate transactions refers to a situation where a single agent represents both the buyer and the seller in the same transaction. This arrangement can lead to complexities and potential conflicts of interest since the agent must balance the interests of two parties with potentially opposing goals—maximizing the sale price for the seller while minimizing the purchase price for the buyer.

In many jurisdictions, dual agency requires clear consent from both the buyer and seller, and agents must still adhere to their fiduciary duties to both clients while ensuring fair treatment. Understanding the implications of dual agency is crucial for anyone working in real estate, as it involves navigating ethical considerations and state regulations pertaining to representation in property transactions.