Which situation exemplifies dual agency?

The situation that best exemplifies dual agency is when a broker represents both the buyer and the seller in a sale. In a dual agency scenario, the broker acts as a neutral intermediary between two parties with conflicting interests. This arrangement requires the broker to maintain fairness and impartiality, ensuring that neither party is given an unfair advantage over the other.

In practice, dual agency means that the same broker or brokerage firm has fiduciary duties to both the buyer and seller, which can create unique challenges, such as managing confidential information and conflicts of interest. It is important for the broker to disclose this dual representation to both parties and obtain their consent to operate under such circumstances, as it is essential for ethical and legal compliance in real estate transactions.

The other options do not fully capture the essence of dual agency. For example, having a buyer client assisted by a broker who listed the property does not require the broker to represent both sides equally and may indicate a more traditional agency relationship. A firm representing both buyers and sellers may imply multiple clients but does not necessarily indicate that a single agent is representing both the buyer and the seller in one transaction, which defines dual agency. A cooperating firm refers to a scenario where different brokerages work together but again does not embody the