Which of the following best describes a "dual agency" situation?

A dual agency situation occurs when a single real estate agent represents both the buyer and the seller in the same transaction. This arrangement can create a unique dynamic, as the agent must navigate the interests of both parties carefully and maintain impartiality. The agent has the responsibility to provide information and guidance to both the buyer and seller, but must also adhere to ethical standards and ensure that the needs of both clients are met without favoring one over the other.

In a dual agency, it is crucial for the agent to disclose their role to both parties and obtain informed consent, as the dual relationship can lead to potential conflicts of interest. Understanding this arrangement is essential for anyone involved in real estate transactions, as it defines the nature of the agent's fiduciary responsibilities and the limitations that may be imposed on their ability to advocate for either party fully.