What does the term "dual agency" refer to?

The term "dual agency" refers to a situation where a broker represents both the buyer and the seller in the same real estate transaction. This arrangement can create a complex dynamic, as the broker must navigate the interests of both parties, ensuring that neither party is favored at the expense of the other. In many states, including Oregon, dual agency requires full disclosure to both parties and often necessitates obtaining their informed consent, as it can present potential conflicts of interest.

Understanding dual agency is crucial for real estate professionals, as it impacts how they manage relationships and communicate with clients. It's important for agents to maintain transparency and clarity in dual agency situations to uphold ethical standards and protect the interests of both the buyer and the seller.