What is meant by "dual agency" in real estate?

The term "dual agency" in real estate refers to a situation where a single broker represents both the buyer and the seller in a transaction. This arrangement means that the broker has a fiduciary duty to both parties, which can create complexities in terms of impartiality and potential conflicts of interest, as the broker must navigate the interests of both the buyer and the seller.

When a broker acts as a dual agent, they must adhere to specific legal requirements and disclosures, ensuring that both parties are aware of the arrangement and consent to it. This consent is crucial because both parties need to understand how the broker's dual role might affect negotiations and confidentiality during the transaction.

The other options do not capture the essence of dual agency accurately. For instance, working with multiple sellers or having two brokers on the same property does not embody the concept of dual agency, as those scenarios involve separate client relationships. Similarly, a buyer engaging with multiple brokers doesn't reflect the dual representation of a single broker for both sides in a transaction.