What is an example of dual agency in real estate?

In real estate, dual agency occurs when a single broker represents both the buyer and the seller in the same transaction. This situation can arise in various market scenarios, such as when a buyer is interested in a property that is listed with the broker. Understanding this concept is crucial because it often requires the broker to navigate the interests of both parties simultaneously, ensuring that neither party's confidential information is compromised.

By representing both sides, the broker has a unique position to facilitate the transaction but must also adhere to legal and ethical obligations to disclose this dual representation to both the buyer and the seller. This transparency is vital for maintaining trust and ensuring compliance with real estate laws and regulations.

In contrast, other options involve scenarios that do not encapsulate the essence of dual agency. For instance, having multiple listings refers to the number of properties a broker may be handling but does not indicate acting for both buyer and seller in a single transaction. Working with several agents suggests a multi-agent representation which is distinct from dual agency, where one agent represents both parties. Representing only one party clearly defines a situation of single agency, where the interests of either the buyer or the seller are exclusively prioritized, thereby eliminating the criteria for dual agency.