Which of the following correctly describes a broker's relationship with both parties in a dual agency?

In a dual agency situation, the broker represents both the seller and the buyer in the same transaction. The broker is required to maintain a fiduciary duty to both parties equally, ensuring that both clients receive fair treatment and that their interests are considered. This dual responsibility means that the broker must act in good faith and with loyalty to both clients.

The nature of dual agency inherently complicates the broker's role because they must navigate the interests of both parties without favoring one over the other. This balance is essential for maintaining trust and ethical standards in real estate transactions.

The other options misrepresent the responsibilities of a broker in a dual agency scenario. Prioritizing the interests of one over the other or remaining entirely neutral would undermine the fiduciary duty owed to each party. In dual agency, the goal is to manage the dual representation transparently and to protect the interests of both clients as equally as possible.