In the context of real estate, what is dual agency?

Dual agency refers to a situation in which a single real estate agent or broker represents both the buyer and the seller in a transaction. This unique arrangement allows one agent to manage negotiations, facilitate communication, and streamline processes, potentially making the transaction more efficient. However, it also introduces complexities regarding the agent's obligations to both parties—most notably the duty of confidentiality and loyalty.

The presence of only one agent acting for both sides means both the buyer and seller must be informed and give consent to the dual agency arrangement, ensuring transparency and fairness in the transaction. This practice is legally permissible in many states, including Georgia, as long as proper disclosures are made and agreements are in place.

Understanding this concept is crucial for those involved in real estate, as it impacts the dynamics of negotiation, the fiduciary duties owed to each party, and the overall ethics of the transaction.