What is defined as dual agency in real estate?

Dual agency in real estate is defined as the situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. This arrangement can pose unique challenges, as the agent must navigate the interests of both parties while maintaining a duty of care and loyalty to each.

In dual agency, it is crucial for the agent to disclose this arrangement to both parties to ensure transparency and adherence to ethical standards. This setup can lead to potential conflicts of interest, as the agent must be careful not to favor one party over the other, impacting negotiations and communication.

The other options do not accurately capture the essence of dual agency. For instance, having an agent only represent the buyer or a buyer representing themselves does not involve the duality of representation that defines this concept. Likewise, two agents representing one client pertains more to the idea of multiple representation rather than dual agency.