What is a key distinction of dual agency in real estate?

Dual agency is characterized by the ability of a real estate agent to represent both the buyer and the seller in a transaction. This unique arrangement allows the agent to facilitate a deal while having a fiduciary responsibility to both parties. The key distinction here is the simultaneous representation, which can create potential conflicts of interest that the agent must navigate carefully.

In a dual agency situation, the agent must maintain a balanced approach and cannot advocate exclusively for one party over the other. This requires a nuanced understanding of the interests of both clients to ensure fairness and transparency throughout the transaction process.

Additional disclosures are often necessary in dual agency situations to inform both parties about the nature of the relationship and the potential implications, but the essence of dual agency lies primarily in the representation aspect. Legal representation for both clients can also be misleading, as the agent is not providing independent legal advice but rather facilitating the transaction. Therefore, the representation of both parties is the most fundamental aspect of dual agency.