What is the definition of dual agency?

Dual agency is defined as a situation where an agent represents both the buyer and the seller in a real estate transaction. This scenario typically arises when a single agent from a brokerage facilitates the sale of a property by representing both parties, which can lead to potential conflicts of interest, as the agent must navigate the interests of both sides to ensure a fair outcome.

For dual agency to be lawful and ethical, it requires full disclosure to both parties, and both parties must consent to this arrangement. The agent's duty is to maintain impartiality and confidentiality, carefully balancing the needs and desires of both the buyer and seller throughout the transaction.

This definition clearly distinguishes dual agency from other types of representation, where an agent might exclusively support either party or handle multiple sellers or buyers without serving both parties in the same transaction.