How is "dual agency" defined in real estate?

Dual agency in real estate refers specifically to the situation where a single agent represents both the buyer and the seller in the same transaction. This arrangement can create unique challenges and responsibilities for the agent, as they must navigate their duty to remain neutral and maintain confidentiality for both parties. Since the agent advocates for both sides, they cannot disclose certain information that could disadvantage one party, such as the seller's lowest acceptable price or the buyer's maximum budget. This dual representation must be disclosed to both parties, and often requires written consent, as it has the potential to create conflicts of interest, making transparency essential in the process.

The other concepts listed do not accurately define dual agency. When two agents represent one buyer is not relevant to dual agency, as it involves separate representation. A buyer and seller being represented by different agencies instead describes a traditional agency relationship, not dual agency. Lastly, an agent representing a party in separate transactions refers to different dealings altogether and does not pertain to the dual representation of both the buyer and the seller within the same transaction.