Define "dual agency."

Dual agency occurs when a real estate agent represents both the buyer and the seller in the same transaction. This situation can arise in transactions where an agent has a listing agreement with the seller and is also assisting a buyer who is interested in that same property.

This arrangement can benefit both parties, as the agent can facilitate communication and negotiations between them. However, it also introduces potential conflicts of interest, as the agent must navigate the competing interests of both clients. In most cases, dual agency requires disclosure and informed consent from both the buyer and the seller, ensuring that both parties are aware of the relationship and any implications it may have on the transaction.

Other definitions that mention representing only one party—whether it's the seller or the buyer—do not capture the essence of dual agency. The option regarding representing multiple sellers in different transactions simultaneously addresses a different concept entirely and does not pertain to dual agency as it involves distinct clients and separate transactions. Thus, acknowledging the dual representation in a single transaction is key to understanding the concept accurately.