What does "dual agency" mean in real estate?

Dual agency in real estate refers to a situation where a broker represents both the buyer and the seller in a transaction. This arrangement can occur when a broker takes on clients from both sides, creating a unique circumstance where their duties and obligations involve representing both parties simultaneously.

In a dual agency scenario, the broker must navigate potential conflicts of interest while maintaining confidentiality and fairness to both clients. It is essential for the broker to disclose this dual representation to both parties and obtain their consent, as this transparency is necessary for ethical practice in real estate.

The other choices do not accurately capture the concept of dual agency. A broker representing either the buyer or the seller indicates a single agency relationship rather than dual. A trust between two separate agents does not pertain to dual representation at all. Additionally, a type of real estate advertisement is unrelated to the legal representation involved in real estate transactions.