What does "dual agency" in real estate signify?

Dual agency in real estate signifies a situation where an agent represents both the buyer and seller in the same transaction. This arrangement often occurs when a real estate agent or brokerage is involved in facilitating a deal, managing the responsibilities toward both parties.

In dual agency, the agent must maintain neutrality and cannot advocate for one party over the other, as their obligations are to both clients. This can create unique ethical and legal considerations, as the agent must ensure that both the buyer's and seller's interests are adequately represented while also adhering to relevant laws and regulations.

Understanding dual agency is crucial for both real estate professionals and clients, as it can influence the dynamics of negotiations and the overall transaction process. It is essential for agents to disclose any dual agency scenarios and obtain informed consent from both parties to avoid potential conflicts of interest.