What does the term Dual Agent refer to?

What does the term Dual Agent refer to?

• A. Agent for the seller only
• B. Agent for the buyer only
• C. Agent representing both buyer and seller
• D. Agent working under another agent

Answer: (C)

The term "Dual Agent" refers specifically to an agent who represents both the buyer and the seller in a real estate transaction. This situation often arises when a real estate agent works for a brokerage that is representing both parties in the sale of a property. In a dual agency scenario, the agent has a fiduciary duty to both parties, which means they must act in the best interests of both the buyer and the seller. However, this can create potential conflicts of interest, as the agent must navigate the different objectives and needs of each party. It is important for buyers and sellers to be aware of this arrangement, as it requires full disclosure and consent from both parties, given the potential for divided loyalties. Understanding dual agency is crucial for real estate professionals and clients alike, as it affects the negotiation process and the overall dynamics of the transaction.

The term "Dual Agent" refers specifically to an agent who represents both the buyer and the seller in a real estate transaction. This situation often arises when a real estate agent works for a brokerage that is representing both parties in the sale of a property.

In a dual agency scenario, the agent has a fiduciary duty to both parties, which means they must act in the best interests of both the buyer and the seller. However, this can create potential conflicts of interest, as the agent must navigate the different objectives and needs of each party. It is important for buyers and sellers to be aware of this arrangement, as it requires full disclosure and consent from both parties, given the potential for divided loyalties.

Understanding dual agency is crucial for real estate professionals and clients alike, as it affects the negotiation process and the overall dynamics of the transaction.