What does "dual agency" refer to in real estate?

The concept of "dual agency" in real estate specifically refers to a situation where a single broker represents both the buyer and the seller in the same transaction. This arrangement can create a unique dynamic, as the broker must navigate the interests of both parties concurrently. It's essential for the broker to maintain transparency and fairness, ensuring that both the buyer and seller understand the implications of this arrangement.

In states like North Carolina, if dual agency occurs, brokers are typically required to disclose this status to both parties and obtain their informed consent. This means that both the buyer and seller need to agree to the dual agency relationship, acknowledging that the broker will not provide exclusive loyalty to either party.

The other scenarios outlined do not encapsulate the essence of dual agency. For instance, representation of only the buyer does not involve the seller, making it a singular agency situation. The involvement of two brokers on the same property refers to co-brokerage or sub-agency arrangements, which are distinct from dual agency. Operating in different markets pertains to geographic aspects of a broker's work and does not directly relate to the representation of clients within a specific transaction. Therefore, dual agency is uniquely defined by the representation of both the buyer and seller by the same broker within one transaction, necess