What is a potential implication of dual agency in real estate?

Dual agency occurs when a real estate agent represents both the buyer and the seller in the same transaction. One of the primary implications of this arrangement is the potential for a conflict of interest. Since the agent has fiduciary duties to both parties, there can be a struggle in prioritizing each client's best interests. This situation can lead to a dilemma where the agent may have to navigate competing interests, potentially compromising the representation quality for both the buyer and the seller.

In a dual agency scenario, an agent may find it challenging to advocate fiercely for either party, as doing so might disadvantage the other. This inherent conflict can create trust issues and may lead to dissatisfaction with the process, as clients may feel that their needs and concerns aren't fully represented. The complexities and ethical considerations surrounding dual agency make the conflict of interest a critical element that must be managed carefully to maintain transparency and fairness in the transaction.