What is a dual agency?

A dual agency refers specifically to a situation in which a real estate agent or broker represents both the buyer and the seller within a single transaction. This arrangement can arise in real estate transactions when the same agent or brokerage is involved in facilitating both sides of the deal, which presents unique challenges and responsibilities.

In dual agency, the agent has a fiduciary duty to both parties, meaning they are required to act in the best interest of each party involved. However, it’s important to note that this can lead to potential conflicts of interest, as it might be difficult for the agent to advocate fully for both parties at the same time. Because of these complexities, dual agency is subject to specific legal regulations and disclosure requirements in many jurisdictions, requiring agents to ensure both the buyer and seller are aware of the dual representation and consent to it.

The other options describe different scenarios that do not fit the definition of dual agency. For instance, having two agents represent one buyer refers to multiple representation on one side, while representing one party only clearly contrasts with the concept of dual agency, which involves representing both parties. Additionally, involving multiple buyers for a single property does not relate to the dual agency definition, as it does not encompass the dual representation aspect between buyer and seller