What is meant by "dual agency" in real estate transactions?

Dual agency occurs when a single agent represents both the buyer and the seller in a real estate transaction. This situation can arise when a real estate professional from a brokerage facilitates a transaction in which both parties are clients of that brokerage. The agent must navigate the interests of both parties, providing a unique challenge in balancing the needs, wants, and confidentiality of both the buyer and seller.

In a dual agency scenario, the agent must disclose their role and obtain consent from both parties to ensure transparency and ethical practice. This arrangement can offer certain efficiencies, such as streamlined communication and negotiated offers. However, it also raises potential conflicts of interest, which is why disclosure and consent are critical components of dual agency.

Understanding this concept is essential for title agents and producers, as it touches on the dynamics of representation and the obligations agents have to their clients in a real estate transaction.