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

Dual agency in real estate refers specifically to the situation where a single real estate agent represents both the buyer and the seller in a transaction. This arrangement can lead to potential conflicts of interest, as the agent must navigate the differing interests of both parties while adhering to their duty of fair dealing and confidentiality.

In this scenario, the dual agent must remain neutral and cannot disclose confidential information from one party to the other without consent. Dual agency is legal in many states, but it often requires full disclosure and the consent of both parties involved, ensuring transparency and fairness in the transaction process.

Understanding this concept is essential for anyone in real estate, as it underscores the importance of clarity in representation and the potential complexities that arise when one agent represents conflicting interests.