What does "undisclosed dual agency" mean in agency law?

Undisclosed dual agency occurs when a real estate agent simultaneously represents both the buyer and the seller in a transaction without disclosing this relationship to either party. This situation creates a conflict of interest, as the agent's duty is to act in the best interests of both clients. However, if both parties are unaware of this dual representation, the agent cannot fulfill their fiduciary duties effectively. Transparency is crucial in agency relationships, and failing to disclose such arrangements can lead to legal and ethical issues for the agent.

In contrast, representing multiple sellers without a contract lacks the context of dual agency, as it does not involve representing both sides of a single transaction. Managing a property without the owner's knowledge refers more to property management scenarios, which is not directly tied to dual agency. Providing dual services for a single commission suggests a transactional arrangement rather than the inherent conflicts and responsibilities that arise in true dual agency situations.