In what situation might an agent act as a dual agent?

An agent acts as a dual agent when they represent both the seller and the buyer in the same transaction. This situation is significant because the agent now has a fiduciary responsibility to both parties involved in the sale. In essence, the agent must navigate the interests of both the seller and the buyer, ensuring that they adhere to legal and ethical standards throughout the transaction.

It is crucial for the agent to disclose their dual agency status to both parties to obtain informed consent, as this arrangement can create potential conflicts of interest. The agent must maintain neutrality and confidentiality, balancing the needs and expectations of both parties while facilitating the process of buying and selling the property. This scenario is unique because it combines the roles of advocating for both the seller's interests and the buyer's interests in one transaction, rather than being rooted solely with one party.