Dual agency in real estate refers to a situation where a single real estate agent or broker represents both the buyer and seller in the same real estate transaction. This means that the agent is acting as a fiduciary for both parties at the same time, which can create a conflict of interest.
In a dual agency situation, the agent is legally obligated to be fair and impartial to both parties and to disclose any material information that could affect the transaction. However, some people believe that it is difficult for a dual agent to provide undivided loyalty and representation to both the buyer and seller because their interests may not always align.
Dual agency is legal in some states and prohibited in others, and some states have specific laws and regulations governing the practice. If you are buying or selling a property, it's important to understand whether dual agency is legal in your state and to carefully consider the potential advantages and disadvantages of working with a dual agent.