What does "dual agency" refer to in real estate?

The term "dual agency" in real estate specifically refers to a situation where a single real estate agent represents both the buyer and the seller in a transaction. This means that the agent acts as a neutral intermediary between the two parties, which can create unique challenges and obligations, such as the necessity for full disclosure and obtaining informed consent from both the buyer and the seller.

In a dual agency scenario, the agent must navigate the interests of both parties, often requiring careful management to avoid conflicts of interest. This can involve ensuring that the agent does not favor one party over the other in decisions affecting the sale or purchase of the property.

Understanding dual agency is crucial for both real estate professionals and clients, as it can significantly influence the dynamics of a transaction and the responsibilities of the agent involved.