When does dual agency occur?

Dual agency occurs when an agent represents both the buyer and the seller in a single real estate transaction. This situation can create a conflict of interest because the agent must navigate the differing interests of both parties, striving to achieve a favorable outcome for each while adhering to legal and ethical standards.

In a dual agency scenario, full disclosure to both parties is essential, and both must consent to the arrangement, understanding that the agent will not be able to advocate fully for either one. This unique relationship requires careful handling to maintain transparency and fairness, as the agent is bound to provide an equal level of service to both sides despite their inherently conflicting objectives.

While options related to agents collaborating on a deal, switching clients, or representing multiple sellers touch on various aspects of agency, they do not accurately define the specific circumstances of dual agency as described in the correct choice.