In real estate, what is a dual agent?

A dual agent is defined as a broker who represents both the buyer and the seller in a real estate transaction. This situation is unique because it involves an inherent conflict of interest, as the agent must navigate the interests of both parties. In a dual agency scenario, the agent is responsible for balancing the needs and desires of both clients, which includes keeping information confidential and seeking the best outcome for both sides.

This form of representation is legal in many jurisdictions, including Colorado, but it typically requires full disclosure to all parties involved and consent to the dual agency arrangement. The dual agent must be skilled in facilitating communication and ensuring that both parties feel fairly represented throughout the transaction process.

In contrast, the other choices represent single agent scenarios or an intermediary without representation, which do not align with the definition of dual agency. A broker representing only the seller or only the buyer acts in the interest of one party alone, while a party assisting in negotiations without representation lacks a formal role as an agent for either side.