What does a dual agency situation require from a real estate professional?

In a dual agency situation, a real estate professional represents both the buyer and the seller in a transaction. This creates a conflict of interest, as the agent has to navigate the interests of both parties simultaneously. To maintain ethical standards and comply with legal requirements, full disclosure to all parties involved is essential.

The requirement for full disclosure ensures that both the buyer and the seller are aware of the agent's role and potential conflicts. It allows both parties to make informed decisions about whether they are comfortable proceeding under these circumstances. By fully disclosing the dual agency relationship, the agent helps build trust and transparency, addressing potential concerns about loyalty and the handling of sensitive information.

Other options do not accurately reflect the nature of dual agency. Substituting one client for another would not be appropriate, as the agent must still represent the interests of both parties. No written agreements do not align with the need for transparency and clarity, which are often best achieved through documentation. A higher commission rate is not a standard requirement or practice in dual agency; commissions are generally negotiated separately and are not influenced solely by dual agency status.