What is a dual agency?

Dual agency occurs when a real estate agent represents both the buyer and the seller in a single transaction. This situation can arise when the same agent or brokerage is involved and aims to facilitate the transaction between the two parties. The advantage of dual agency can sometimes be the streamlined communication and negotiation process, as the agent has insights into both perspectives.

However, it's important to understand that dual agency comes with specific obligations to maintain fairness and neutrality, ensuring that neither party is at a disadvantage. This type of representation requires full disclosure to both parties, allowing them to consent to the dual agency arrangement, as it can present potential conflicts of interest.

The other choices reflect different scenarios that do not accurately encompass the definition of dual agency. For instance, representing just one party means acting in a single agency capacity, while providing limited representation to both parties refers more to a type of relationship that doesn't fully qualify as dual agency. Similarly, being a sub-agent for the seller only also indicates a one-sided representation, rather than the simultaneous representation required to define dual agency.