Georgia MLS Practice Exam 2026 – The All-in-One Guide to Mastering Your Real Estate Skills!

In real estate, when a broker represents both the buyer and the seller in the same transaction, they are referred to as a dual agent. This designation means that the broker is facilitating the transaction for both parties, which can lead to potential conflicts of interest since the broker has fiduciary duties to both parties.

The key aspect of dual agency is that the broker must ensure that they do not favor one party over the other during negotiations and must maintain confidentiality for each party's personal and financial information. This practice is subject to state laws, which often require full disclosure and informed consent from both parties involved in the transaction.

Understanding dual agency is crucial for real estate professionals because it impacts how they manage relationships and communications in transactions. This concept distinguishes it from other types of agency relationships, such as single agency, where a broker represents only one party, or designated agency, where one agent represents the buyer and another represents the seller within the same brokerage. Co-brokerage typically refers to an agreement between two brokers from different firms working together on a transaction but does not imply dual representation of both parties.