Which agency relationship allows a broker to work with both buyers and sellers in a transaction?

The concept of dual agency is critical in real estate transactions when a broker represents both the buyer and the seller in the same deal. This arrangement enables the broker to facilitate communication and negotiations between the two parties, striving to promote their interests while navigating any potential conflicts that might arise. In dual agency, the broker must disclose this relationship to both parties and obtain their consent, ensuring transparency and adherence to legal obligations.

Dual agency is particularly useful in situations where both the buyer and the seller seek the assistance of the same brokerage, harnessing the broker's knowledge and access to streamline the transaction. However, it also requires the broker to be adept at balancing the needs of both sides, ensuring that neither party feels disadvantaged.

In contrast, single agency refers to a situation where the broker represents only one party—either the buyer or the seller—but not both, eliminating any conflict of interest. Special agency and subagency involve more specific types of relationships without the dual representation that characterizes dual agency. Understanding the nuances of these different agency relationships is essential for real estate professionals to navigate their duties effectively and ethically.