What does "dual agency" refer to?

Dual agency refers to a situation in real estate where a single agent represents both the buyer and the seller in a transaction. This can occur in various types of real estate dealings and is significant because it requires the agent to maintain a neutral position, ensuring that the interests of both parties are adequately protected.

In a dual agency arrangement, the agent must disclose their role to both parties and obtain their consent, as it can lead to potential conflicts of interest. For instance, while the agent must work toward facilitating the sale, they cannot advocate exclusively for one party over the other. This concept is crucial for ensuring transparency and fairness in real estate transactions.

In contrast, the other options pertain to different scenarios that do not align with the definition of dual agency. Representing multiple buyers does not inherently involve the seller; a partnership between firms does not indicate dual representation, and an agreement for freelancing agents doesn't capture the essence of dual agency within a single transaction's context.