What is the concept of dual agency?

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The concept of dual agency refers to a situation in real estate where a single broker or agent represents both the buyer and the seller in a transaction. This can occur in various scenarios, such as when a buyer finds a property through a brokerage, and the same brokerage also represents the seller of that property.

In dual agency, the agent must navigate the interests of both parties, which can pose challenges, particularly regarding confidentiality and loyalty. The agent has an obligation to treat both parties fairly, ensuring that neither party's interests are compromised. This practice is often regulated by state laws, which require agents to disclose their dual agency status to both the buyer and the seller and often require both parties' consent to proceed.

Understanding dual agency is crucial for real estate professionals as it emphasizes the need for clear communication and transparency in transactions, ensuring that all parties are fully aware of the arrangements and implications of having one agent represent both sides.

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